GAIL Gas announces Rs 1 cut in CNG, domestic PNG prices from Thursday

GAIL Gas Ltd on Thursday announced a reduction of Rs 1 in the price of compressed natural gas (CNG) and domestic piped natural gas (PNG) supplied to household kitchens for cooking purposes, following the rationalisation of pipeline tariffs.

The announcement came a day after Indraprastha Gas Ltd, India’s largest city gas retailer, cut the prices of natural gas piped into household kitchens for cooking in Delhi and National Capital Region (NCR) towns by Rs 0.70 per standard cubic metre. Prior to that, Think Gas had reduced CNG prices by Rs 2.50 per kg and domestic PNG prices by up to Rs 5 per standard cubic metre (scm).

“GAIL Gas Limited has reduced the cost of domestic piped natural gas (PNG) and compressed Natural Gas (CNG) by Rs 1 per SCM and Rs 1 per kg, respectively, across all its authorised areas in the country,” the company said in a statement.

The revised prices came into effect from Thursday across GAIL Gas’ geographical areas (GAs) in Uttar Pradesh, Karnataka, Madhya Pradesh, Haryana, Uttarakhand, Jharkhand, Chhattisgarh, Rajasthan and Odisha.

Speaking on the decision, a GAIL Gas officer said the Ministry of Petroleum and Natural Gas and the sector regulator, the Petroleum and Natural Gas Regulatory Board (PNGRB), continue to implement progressive policy measures that are fostering a favourable and financially sustainable ecosystem for the growth of the CNG and domestic PNG market in India.

PNGRB on December 16 announced a rationalised tariff structure for pipelines that transport natural gas, which is used as feedstock for electricity generation, fertiliser production, CNG manufacturing and as fuel in household kitchens. The revised tariffs, which take effect from January 1, are aimed at making natural gas transportation simpler, fairer and more cost-effective for consumers and the city gas distribution sector.

Under the revised regime, effective January 1, 2026, the number of distance-based tariff zones has been reduced from three to two—up to 300 kilometres and beyond. A single lower Zone-1 tariff, of around Rs 54 per million British thermal unit, will now be applied nationwide for CNG and domestic PNG customers, irrespective of the distance from the gas source, according to PNGRB.

“The recent revision of the Unified Tariff by PNGRB, from January 1, 2026, including the applicability of Zone-1 tariff to city gas distribution (CGD) entities for CNG and domestic PNG segments, is set to significantly reduce the transportation cost of natural gas,” the company official said.

He said GAIL Gas’ decision to reduce prices aligns with the Government of India’s vision of a gas-based economy and is aimed at further encouraging the adoption of cleaner fuels.

GAIL Gas Limited is a wholly owned subsidiary of Maharatna public sector undertaking GAIL (India) Limited and is implementing city gas distribution networks across 16 geographical areas.