Adani Total Gas cuts CNG, piped gas prices after PNGRB tariff reset

The PNGRB's new tariff order consolidates three gas zones into two and sets a uniform Rs 54 per MMBtu rate for CNG and domestic PNG, enabling ATGL and other distributors to reduce household PNG and vehicle CNG costs across regions. The move aims to accelerate cleaner fuel adoption nationwide.

Adani Total Gas Ltd (ATGL), the city gas joint venture of Adani Group andFrench giant TotalEnergies, has cut prices of CNG and natural gas piped tohousehold kitchens for cooking across multiple markets, delivering directrelief to them and motorists.

CNG and domestic piped natural gas prices have been cut by up to Rs 4, thecompany said. The reduction follows the landmark tariff reform by the Petroleum andNatural Gas Regulatory Board (PNGRB), which has streamlined gastransportation charges and lowered input costs for city gas distributors.

ATGL said the price reduction varies by geography, depending ontransportation zones. In Gujarat and adjoining Madhya Pradesh-Maharashtraareas, CNG is now cheaper by Rs 0.50 to Rs 1.90 per kg while domestic PNGis down by up to Rs 1.10 per standard cubic metre.

In Rajasthan, Punjab, Haryana-NCR, northern Madhya Pradesh and borderingUttar Pradesh, CNG price has been reduced by Rs 1.40 to Rs 2.55 per kgwhile domestic PNG is cheaper by Rs 1.10 to Rs 4.00 per scm. In Central and Eastern India, CNG prices fall by Rs 1.81 to R 4.05 per kg,and domestic PNG are down by up to Rs 4.00 per scm.

Effective January 1, 2026, PNGRB's new tariff order has collapsed three gastransportation zones into two, applying a uniform Zone-1 tariff of Rs 54per million British thermal unit (excluding tax) for domestic PNG andCNG-Transport segments nationwide. The simplified structure removes regional inefficiencies and directlytranslates into lower consumer prices.

Besides ATGL, GAIL Gas Ltd has also announced a Rs 1 reduction in CNG andPNG prices. Indraprastha Gas Ltd, India's largest city gas retailer, hascut prices of natural gas piped into household kitchens (PNG) for cookingin Delhi and NCR towns by Rs 0.70 per standard cubic metre (scm), whileThink Gas has reduced CNG prices by Rs 2.50 per kg and that of PNG by up toRs 5 per scm.

Welcoming the reform, Suresh P Manglani, ED and CEO, ATGL, said the movewould make natural gas more affordable and accelerate the adoption ofcleaner fuels across homes and transport.

ATGL operates in 53 geographical areas, directly and through IOAGPL,serving over 1.2 million households and running nearly 1,100 CNG stationsnationwide.

"We welcome PNGRB's landmark initiative to simplify and rationalise gastransportation charges, a move that directly benefits millions of consumerswho rely on CNG for their vehicles and piped natural gas for their homes."By making natural gas more affordable and accessible, this reform willencourage wider adoption of cleaner fuels across households and thetransportation sector," Manglani said.

With natural gas still forming only around 6 per cent of India's energymix, such cost-rationalisation measures are seen as critical to achievingthe government's 15 per cent by 2030 target - positioning gas as India'skey transition fuel.

PNGRB had on December 16 announced a rationalised tariff structure forpipelines that move natural gas - the feedstock for generating electricity,producing fertiliser, making CNG and used as fuel in household kitchens.The revised tariffs, which are effective January 1, make natural gastransportation simpler, fairer and more cost-effective for consumers andthe city gas distribution sector.

Under the revised regime, effective January 1, 2026, the number ofdistance-based tariff zones has been reduced from three to two - up to 300km and beyond - with a single lower Zone-1 rate (around Rs 54 per millionBritish thermal unit) now applied nationwide for CNG and domestic PNGcustomers, regardless of distance from the gas source, according to PNGRB.