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PNGRB Cuts CNG and PNG Tariffs, Giving Consumers Relief

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  Published in Automotive and Transportation on Wednesday, December 17th 2025 at 7:40 GMT by Business Today

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Consumers Likely to Get Relief from CNG and PNG Bills as PNGRB Cuts Gas Transportation Tariffs

In a move that could ease the financial burden on a wide spectrum of consumers—from daily commuters to freight operators—the Petroleum and Gases Regulatory Board (PNGRB) has announced a reduction in transportation tariffs for Compressed Natural Gas (CNG) and Petroleum Gas (PNG). The decision, disclosed on December 17 2025, follows a series of regulatory reviews aimed at keeping fuel prices in line with fluctuating global market conditions. While the immediate effect will be a lower cost per liter for gas, the broader implications touch on the entire transportation sector, the environment, and the national economy.

Background: Rising Fuel Costs and the Need for Regulation

For several years, India’s gas transportation rates have been under scrutiny. Global oil prices have been volatile, and domestic demand for CNG and PNG has surged due to the rise in electric vehicle (EV) infrastructure and the automotive industry’s shift towards cleaner fuels. In response, the PNGRB has historically calibrated tariffs to strike a balance between supporting the oil and gas industry’s viability and protecting consumers from price hikes. The latest tariff adjustment is the most significant in over two years.

According to a briefing released by the PNGRB, the board had initially projected a modest 2‑3 % increase in transportation charges for the current fiscal year. However, the recent decline in the global crude oil price—driven largely by easing tensions in key producing regions and a surge in renewable energy investment—has prompted a reconsideration. The board’s decision is therefore positioned as both a market response and a strategic policy shift to encourage wider adoption of CNG and PNG.

The Tariff Cut: Numbers and Scope

The revised tariff schedule, effective from January 1 2026, reflects a 4 % reduction in transportation charges for CNG and a 3.5 % cut for PNG. While the precise figures vary by region due to logistical cost differences, the average price per 1,000 kWh is expected to drop from ₹22 to ₹21.28 for CNG and from ₹32 to ₹30.88 for PNG. The PNGRB has highlighted that the cuts are calibrated against the International Energy Agency’s (IEA) latest forecasts, ensuring that the rates remain competitive while preserving the industry’s revenue base.

In addition to the price changes, the PNGRB has introduced a provisional “fast‑track” tariff adjustment mechanism. This allows for quarterly reviews in response to rapid market shifts—a departure from the traditional annual review cycle. This mechanism is expected to prevent future over‑pricing during periods of low global oil prices.

Impact on Consumers and Businesses

Daily commuters stand to benefit directly from the lowered cost of refueling. A study by the National Association of Road Transport Operators (NARTO) predicts that a 4 % tariff cut could translate into savings of roughly ₹50 per month for a typical daily commuter who uses CNG for public transport.

Commercial transport operators—especially those running long‑haul freight, school buses, and taxi fleets—are anticipated to see more pronounced benefits. The PNGRB estimates that a 3.5 % reduction for PNG could result in a savings of approximately ₹3.2 lakhs annually for a mid‑size logistics company operating 50 PNG‑powered vehicles. This financial cushion could be reallocated towards fleet maintenance or expansion.

Beyond direct cost savings, the tariff cut is also projected to bolster the competitiveness of PNG‑based vehicles in a market increasingly dominated by diesel and petrol alternatives. By lowering operational costs, the board hopes to encourage the adoption of PNG as a cleaner, more sustainable fuel option.

Stakeholder Reactions

A spokesperson for the PNGRB, Arjun Kumar, remarked, “The board’s objective is to ensure that consumers receive fair pricing while maintaining a stable revenue stream for the industry. The current cut reflects the board’s commitment to adapting swiftly to market realities.”

Meanwhile, Rahul Mehta, a representative of the All India Bus & Taxi Operator’s Federation (AIBTO), welcomed the decision, stating, “This reduction is a timely relief for us. It not only lowers our fuel costs but also reassures our passengers that the journey remains affordable.”

On the industry side, Shivani Patel of the Natural Gas Manufacturers Association (NGMA) noted that the tariff cut could spur increased production capacity, as producers gain confidence that the market will absorb additional supply without compromising profitability.

Future Outlook

The PNGRB’s decision is part of a broader strategy to encourage the use of cleaner fuels in India’s transport sector. The board’s website now includes a dedicated portal where stakeholders can monitor real‑time tariff updates and submit feedback. In the longer term, the PNGRB is exploring potential collaborations with state governments to expand CNG and PNG infrastructure, particularly in Tier‑2 and Tier‑3 cities where demand is poised to rise.

With the tariff cuts in place, Indian consumers and businesses can expect measurable relief in fuel costs, contributing to lower transportation expenses and reinforcing the nation’s shift toward greener, more sustainable energy solutions.