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PNGRB Approves Reforms to Natural Gas Pipeline Tariff Regulations

Last updated on July 5th, 2025 Posted on July 5, 2025 by NEXT IAS Current Affairs Team  229

Syllabus: GS3/ Energy

In News

  • The Petroleum and Natural Gas Regulatory Board (PNGRB) has approved significant amendments to the Natural Gas Pipeline Tariff Regulations, 2025, aimed at simplifying tariffs, improving access, and supporting the government’s vision of “One Nation, One Grid, One Tariff.”

Key Amendments

  • Reduction of Unified Tariff Zones: The number of unified tariff zones is reduced from three to two.
    • This will simplify the tariff structure and streamline the natural gas transportation network.
  • Nationwide Extension of Lower Unified Tariff (Zone 1): The benefit of the lower unified tariff under Zone 1 is now extended across India. Applies to both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG), including domestic household consumers.
    • Expected to improve affordability and access to natural gas nationwide.
  • Mandatory Long-Term Contracts for System-Use Gas: Pipeline operators are now required to procure at least 75% of their system-use gas through long-term contracts (minimum tenure of three years).
    • This will enhance supply efficiency and tariff stability.
  • Introduction of Pipeline Development Reserve: Operators with more than 75% pipeline utilisation must allocate 50% of their post-tax earnings to infrastructure development (Pipeline Development Reserve).
    • The remaining 50% of post-tax earnings will be returned to consumers through tariff adjustments.
  • Alignment with “One Nation, One Grid, One Tariff”: All amendments are aligned with the government’s policy to create a unified and accessible natural gas market across India.
    • Changes were made after stakeholder consultations to ensure broad support and effective implementation.
About Petroleum and Natural Gas Regulatory Board (PNGRB)
– It is a statutory body established under the Petroleum and Natural Gas Regulatory Board Act, 2006. 
– Its primary mandate is to regulate downstream activities in India’s petroleum and natural gas sector, excluding the production of crude oil and natural gas.
– The Board has powers similar to a civil court for settling disputes and maintains a data bank on sector activities.
– PNGRB has developed the National Hydrocarbon Infrastructure Monitoring System (NHIMS) for real-time monitoring of petroleum and natural gas transport infrastructure. 

Source: ET

 
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