In a significant move to attract investment and enhance gas consumption, particularly in the CNG and domestic PNG sectors, the Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed amendments to the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008.

The regulatory body released a Public Consultation Document on March 21, 2025, inviting stakeholder input on various aspects of natural gas pipeline tariff regulations. Key proposals include reducing unified tariff zones from three to two, applying the zone one unified tariff to all CNG and PNG-Domestic customers, incentivizing isolated network operators and pipelines, equally distributing the benefits of volumes beyond the normative threshold between consumers and pipeline operators, and creating policies for the long-term procurement of System Use Gas.

In an exclusive interview with ANI, AK Tiwari, Member, PNGRB, highlighted the main aspects of the consultation: "There were three zones; now we are going to have two zones. We have also kept a cap on tariff for PNG and CNG customers that will benefit them directly."

Tiwari added that the board is working on incentivizing pipeline operators in isolated fields across Gujarat, Tamil Nadu, and Assam, where earnings are currently negative. For operators earning above the normative 75 per cent, he proposed a 50-50 sharing arrangement where "50 per cent would be passed to customers and 50 per cent operators can retain for infrastructure development as a development reserve fund."