CNG & PNG Prices to Drop from January 1, 2026: Major Relief for Consumers

The New Year 2026 brings good news for millions of gas consumers across India. The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced a tariff reduction, which will result in a 2–3 rupees per unit decrease in CNG and domestic PNG prices starting January 1, 2026. This reduction is expected to directly benefit both households and the transportation sector.

PNGRB member A.K. Tiwari explained that the price cut is primarily due to a simplification in the gas distribution tariff structure. Earlier, gas rates were calculated across three distance-based zones—up to 200 km, 200–1200 km, and above 1200 km. Under the new system, this has been reduced to two zones, with Zone-1 rates rationalized at ₹54 per unit, compared to the previous ₹80–107. This streamlined pricing will be applied uniformly across India.

Direct Benefit to Consumers

The revised tariff will impact 40 city gas distribution (CGD) companies operating in 312 geographical areas nationwide. The government has directed that the entire benefit from reduced rates be passed directly to consumers, with PNGRB monitoring compliance. This move will ease costs for private vehicle owners, taxi operators, and households using piped gas.

Government’s Goal

The government aims to promote the use of natural gas across India. State governments are being engaged to reduce VAT and accelerate infrastructure expansion. With cheaper rates and wider accessibility, a significant surge in the adoption of clean energy is expected in the near future.