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GAIL Gas Cuts PNG & CNG Prices by ₹1, Boosting India's Clean Fuel Push

GAIL Gas has reduced the price of domestic Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) by ₹1 per unit across its authorised areas in nine states. The company cites progressive government policies and a new unified tariff structure as key drivers for the reduction. This move supports the national vision for a gas-based economy by making clean fuels more affordable. The price cut comes as the city gas distribution sector anticipates improved operating margins this fiscal year.

Key Points: GAIL Gas Reduces Domestic PNG & CNG Prices by ₹1

  • Price cut effective Jan 1
  • Applies in 9 states & UTs
  • Aligns with gas-based economy vision
  • Follows PNGRB's new unified tariff
2 min read

GAIL Gas cuts domestic PNG and CNG costs across authorised areas

GAIL Gas cuts domestic PNG & CNG prices by ₹1 per unit across 9 states, aligning with India's gas-based economy vision and new tariff policies.

"progressive policy measures... fostering a favourable... ecosystem for the growth of the CNG and domestic PNG market - GAIL Gas CEO"

New Delhi, Jan 1

GAIL Gas Limited on Thursday announced to reduce the cost of domestic Piped Natural Gas and Compressed Natural Gas by Rs 1 per SCM and Rs 1 per kg respectively, across all its authorised areas in the country.

The price cut comes into effect from January 1 in GAIL Gas Geographical Areas (GAs) in Uttar Pradesh, Karnataka, Madhya Pradesh, Haryana, Uttarakhand, Jharkhand, Chhattisgarh, Rajasthan and Odisha.

"The Ministry of Petroleum and Natural Gas and 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," said GAIL Gas Chief Executive Officer.

"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 GAIL Gas executive added.

The decision to reduce prices is in line with the Government of India's vision of a gas-based economy and to further encourage the adoption of clean fuels.

GAIL Gas Limited is a wholly owned subsidiary of Maharatna PSU GAIL (India) Limited and is implementing City Gas Distribution networks in 16 Geographical Areas (GAs).

Meanwhile, GAIL (India) Limited, the country's largest natural gas company, reported a consolidated performance marked by steady revenue growth and improved profitability in the second quarter of FY 2025-26.

According to a recent Crisil report, city gas distribution (CGD) companies in India are projected to clock an operating profit of Rs 7.2-7.5 per standard cubic metre (scm) this fiscal -- up 8-12 per cent compared with the second half of last fiscal when margins dropped because of a sudden and steep decline in gas allocation under the administered price mechanism (APM) for the compressed natural gas (CNG) segment.

Consequently, distributors had to take recourse to the spot gas market for supply, which exerted upward pressure on cost. The companies have, thereafter, transitioned to contracted supplies, which is expected to burnish margins.

- IANS

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Reader Comments

R
Rohit P
Good move, but why only in GAIL's authorised areas? What about cities where other CGD companies operate? The price reduction should be uniform across the country for it to have a real impact on adoption.
A
Aman W
Re 1 per kg reduction in CNG is helpful for auto drivers and cab owners. With petrol prices so high, this makes CNG vehicles even more economical. Hope the pipeline network expands faster to more tier-2 cities.
S
Sarah B
Interesting to see the long-term planning with the Unified Tariff from 2026. It shows the government is thinking about sustainable infrastructure, not just short-term price cuts. The gas-based economy vision needs such policy stability.
V
Vikram M
The article mentions improved profitability for GAIL. While price cuts are good for consumers, I hope the PSUs also reinvest profits into expanding coverage and maintaining safety standards. Last mile connectivity is still a challenge in many areas.
N
Nisha Z
As someone who recently got a PNG connection, this is great news! The billing is so much more convenient than booking cylinders. Hope more apartments and societies get the pipeline infrastructure soon. 🙏

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