Has GAIL Gas Reduced Domestic PNG and CNG Prices?
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Synopsis
In a significant move, GAIL Gas Limited has announced a reduction in domestic PNG and CNG prices. This change, effective from January 1, aims to promote the adoption of cleaner fuels in line with the Government of India's gas-based economy vision. Discover how this impacts consumers and the gas distribution landscape across multiple states.
Key Takeaways
- GAIL Gas Limited has reduced PNG and CNG prices by Rs 1.
- The price cut is effective from January 1.
- This change supports the Government of India’s gas-based economy initiative.
- The revision applies across multiple states including Uttar Pradesh and Karnataka.
- Industry experts predict improved margins for gas distributors.
New Delhi, Jan 1 (NationPress) On Thursday, GAIL Gas Limited revealed a reduction in the prices of domestic Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) by Rs 1 per SCM (Standard Cubic Meter) and Rs 1 per kg, applicable across all its authorized regions in the country.
This price adjustment is effective from January 1 within the GAIL Gas Geographical Areas (GAs) that span Uttar Pradesh, Karnataka, Madhya Pradesh, Haryana, Uttarakhand, Jharkhand, Chhattisgarh, Rajasthan, and Odisha.
According to the Chief Executive Officer of GAIL Gas, “The Ministry of Petroleum and Natural Gas and the Petroleum and Natural Gas Regulatory Board (PNGRB) are actively pursuing innovative policy initiatives that are creating a favorable and financially viable environment for the expansion of the CNG and domestic PNG sectors in India.”
He further explained, “The recent adjustment of the Unified Tariff by PNGRB, starting January 1, 2026, will include the application of the Zone-1 tariff for City Gas Distribution (CGD) entities in the CNG and domestic PNG markets, which is anticipated to significantly lower the natural gas transportation costs.”
This price reduction aligns with the Government of India’s strategy for transitioning to a gas-based economy while promoting the use of clean energy sources.
GAIL Gas Limited operates as a wholly owned subsidiary of Maharatna PSU GAIL (India) Limited and is responsible for developing City Gas Distribution networks across 16 Geographical Areas (GAs).
In addition, GAIL (India) Limited, recognized as the largest natural gas company in the country, has reported steady revenue growth and enhanced profitability for the second quarter of FY 2025-26.
A recent report by Crisil forecasts that city gas distribution (CGD) companies in India are set to achieve an operating profit of Rs 7.2–7.5 per standard cubic meter (scm) this fiscal year, reflecting an 8-12 percent growth compared to the latter half of last fiscal year when profit margins were adversely affected by a sudden and steep decrease in gas allocations under the administered price mechanism (APM) for the CNG sector.
As a result, distributors had to rely on the spot gas market for supply, which increased costs. However, companies have since shifted to contracted supplies, which is expected to enhance profit margins.
Point of View
It's vital to acknowledge the positive implications of GAIL Gas Limited's decision to reduce PNG and CNG prices. This initiative not only supports the government's vision of a gas-based economy but also encourages the adoption of cleaner energy solutions. Such moves reflect a commitment to sustainable development and consumer welfare.
NationPress
08/01/2026
Frequently Asked Questions
What is the new price for PNG and CNG?
The new price is reduced by Rs 1 per SCM for Piped Natural Gas (PNG) and Rs 1 per kg for Compressed Natural Gas (CNG).
When does the new pricing take effect?
The revised pricing is effective from January 1.
Which regions are affected by this price cut?
The price cut applies to GAIL Gas Geographical Areas in Uttar Pradesh, Karnataka, Madhya Pradesh, Haryana, Uttarakhand, Jharkhand, Chhattisgarh, Rajasthan, and Odisha.
What is the government’s stance on this price reduction?
The price reduction aligns with the Government of India’s vision for a gas-based economy and encourages the use of clean fuels.
What is GAIL Gas Limited?
GAIL Gas Limited is a wholly owned subsidiary of Maharatna PSU GAIL (India) Limited, focusing on City Gas Distribution across various regions.
