Daijiworld Media Network – New Delhi

New Delhi, Jul 4: In a significant step towards creating a cleaner and more inclusive energy economy, the Petroleum and Natural Gas Regulatory Board (PNGRB) has approved the Second Amendment to the Natural Gas Pipeline Tariff Regulations, 2025.

The reforms were cleared during a high-level board meeting and are expected to bring transparency, affordability, and greater private sector participation into India's rapidly expanding gas sector. They are seen as a major milestone in the Centre’s vision of “One Nation, One Grid, One Tariff.”

One of the standout changes is the reduction of Unified Tariff Zones from three to two, a move that simplifies natural gas transportation across India and creates a fairer pricing structure, especially benefiting remote and underserved regions.

Further pushing for affordability, the PNGRB has extended the benefits of Zone 1’s Unified Zonal Tariff to the CNG and PNG domestic segments. This is likely to significantly reduce the cost burden on households and urban transport systems, aiding the broader adoption of clean fuel alternatives.

To enhance supply reliability and streamline cost structures, pipeline operators have now been mandated to secure at least 75% of their annual system-use gas via long-term contracts with a minimum tenure of three years. The regulator says this will help mitigate market volatility, ensuring more stable and predictable tariffs for consumers.

In another consumer-friendly initiative, PNGRB has proposed a novel Pipeline Development Reserve. This mechanism will utilise surplus earnings from pipeline operators—specifically those surpassing the 75% utilisation threshold—for future infrastructure development. Half of these earnings will be reinvested into expanding the pipeline network, while the other half will directly benefit consumers through tariff relief.

PNGRB has emphasised that the reforms are aligned with India's long-term goal of transitioning to a gas-based economy and will play a pivotal role in boosting investor confidence while prioritising public welfare.

With these changes, the regulator aims to make natural gas a preferred, cost-effective, and environmentally responsible fuel for the country’s evolving energy needs.