PNGRB simplifies gas tariff structure, unified reduces zones from three to two

(RNS, 05-07-25) In a bid to accelerate natural gas adoption in the country, the Petroleum and Natural Gas Regulatory Board (PNGRB) has simplified its tariff structure by reducing the number of unified tariff zones from three to two.

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Previously, India's gas grid operated with three tariff zones based on distance from the gas source: Zone 1 (up to 300 km), Zone 2 (300 km to 1,200 km), and Zone 3 (beyond 1,200 km). While a uniform tariff was applied within each zone, successive zones incurred higher tariffs to account for longer transportation distances. This move is part of the recently approved amendments to the Natural Gas Pipeline Tariff Regulations, 2025. Another amendment is the nationwide application of the Unified Zonal Tariff of Zone 1 to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) domestic segments, regardless of their distance from the gas source. This move is anticipated to make natural gas more affordable for millions of urban households and strengthen