PNGRB price order: Regulator tells CGD firms to charge one PNG rate; warns against misuse

I

ndia's petroleum regulator has directed city gas distributors to charge a uniform rate for piped natural gas (PNG) supplied to household kitchens, regardless of usage volume.

The move comes amid concerns that a tiered pricing system adopted by some firms may be encouraging misuse of subsidised gas and leading to unfair charges for genuine consumers.In a recent notice, the Petroleum and Natural Gas Regulatory Board (PNGRB) said it had observed that “certain city gas distribution (CGD) entities are implementing a telescopic pricing structure for PNG domestic consumers, wherein the per SCM (Standard Cubic Metre) price of natural gas escalates as consumption surpasses a predefined threshold.”As per news agency PTI, the regulator called the practice “incorrect” and said such pricing “may inadvertently facilitate the unauthorised use of subsidised administered price mechanism (APM) gas by commercial consumers, who may be misclassified as domestic consumers.”Natural gas allocated under APM is priced lower than market rates and is meant strictly for households and transport use. Commercial users such as restaurants and hotels are required to buy gas at market rates.

PNGRB said that CGD firms are allocated APM gas “at a concessional rate compared to market or spot LNG prices” to promote wider adoption of cleaner fuel.“Genuine domestic consumers with higher consumption levels may be unfairly subjected to elevated charges,” the PNGRB said. It directed companies to review consumer usage and investigate outliers, ensuring fair and transparent billing for all residential users.PNGRB refrained from naming companies that had adopted telescopic pricing, but stressed that “PNG (Domestic kitchen usage) should be supplied at a uniform rate to all domestic household consumers, irrespective of their daily consumption levels.”The issue echoes similar concerns in the LPG sector, where subsidised 14.2-kg cylinders for household use are often misused by commercial establishments to avoid paying for higher-priced 19-kg commercial cylinders.This directive comes amid PNGRB’s broader efforts to streamline the gas sector. As per ANI, the regulator recently announced the Second Amendment to the Natural Gas Pipeline Tariff Regulations, 2025, reducing tariff zones from three to two and extending unified tariffs to the domestic PNG and CNG segments nationwide.The push aligns with India’s long-term plan to increase the share of natural gas in its primary energy mix to 15 per cent by 2030, up from the current 7 per cent. A recent PNGRB study projects that city gas distribution will drive the bulk of this demand, with PNG and CNG together expected to consume over 87 mmscmd by 2030.