Gas Reforms
PNGRB approves reforms to tariff norms, cuts down unified tariffs zones to 2
This story was originally published at 12:36 IST on 4 July 2025
Register to read our real-time news.Informist, Friday, Jul. 4, 2025
NEW DELHI - The Petroleum and Natural Gas Regulatory Board has approved reforms to the Natural Gas Pipeline Tariff Regulations, 2025, under which unified tariff zones have been reduced to two from three previously. Unified zonal tariff of Zone 1 has been extended country-wide to compressed natural gas and piped natural gas segments, it said in a press release Friday.
Further, the board has mandated pipeline operators to procure at least 75% of their annual system-use gas through long-term contracts with a tenure of at least three years. This, the board said, will stabilise tariffs and ensure efficiency in supply.
The board has also introduced a dedicated Pipeline Development Reserve which will utilise earnings from pipeline entities that exceed 75% utilisation benchmarks. "50% of these net-of-tax earnings will be reinvested into infrastructure development, while the remaining 50% will be passed on to consumers through tariff adjustments," the board said.
It said that these reforms are aligned with the plan of "One Nation, One Grid, One Tariff", reflecting the board's strategy to simplify the market structure and promote cleaner fuels. End
Reported by Anand JC
Edited by Vandana Hingorani
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
