In a bid to support wider adoption of natural gas, the benefit of the lower unified tariff under Zone 1 will now be extended nationwide to both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) segments, including for use in domestic households.Pipeline operators will now be required to procure at least 75% of their system-use gas through long-term contracts of three years or more. This step is aimed at improving supply efficiency and creating more stable tariffs.
A new Pipeline Development Reserve has also been introduced. Operators with more than 75% pipeline utilisation will be required to allocate 50% of their post-tax earnings to infrastructure development, while the remaining 50% will be returned to consumers via tariff adjustments.
Approved during a recent board meeting, the changes follow stakeholder consultations and are aligned with the government’s “One Nation, One Grid, One Tariff” framework.
Catch live market updates with CNBC-TV18.com’s blog
First Published: Jul 4, 2025 11:38 AM IS