PNGRB approves Second Amendment to Natural Gas Pipeline Tariff Regulations, 2025 | Current Affairs | Vision IAS
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PNGRB approves Second Amendment to Natural Gas Pipeline Tariff Regulations, 2025

Posted 05 Jul 2025

2 min read

  • The reforms aim to develop more transparent, consumer-oriented, and investment-friendly natural gas infrastructure in India anchored in the vision of One Nation, One Grid, One Tariff.

Key Reforms: 

  • Streamlined Tariff Zones:  It reduces the number of Unified Tariff Zones from three to two, simplifying the transportation system.
  • CNG & PNG (Domestic) Boost: Benefit of Unified Zonal Tariff of Zone 1 has been extended nationwide to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) Domestic segments.
  • Efficient Fuel Procurement Mandate: It mandates pipeline operators to procure ≥75% of annual system-use gas via long-term contracts (≥3 years). It aims to lower procurement risks, reduce transaction costs.
  • Pipeline Development Reserve – A Sustainable Infra Model: It creates a Pipeline Development Reserve, using earnings from pipeline entities that exceed 75% utilization benchmark. 
    •  50% of these net-of-tax earnings will be reinvested into infrastructure development, while the remaining 50% will be passed on to consumers through tariff adjustments—creating a performance-linked, self-sustaining model for growth.

Role of PNGRB (Petroleum and Natural Gas Regulatory Board)

  • Genesis: It is a statutory body  formed under Petroleum and Natural Gas Regulatory Board Act, of 2006.
  • Functions:
    • Regulation of refining, transportation, distribution, storage, marketing, supply and sale of petroleum products and natural gas excluding production of crude oil and natural gas
    • It register entities to market notified petroleum and petroleum products
    • Protect the interest of consumers by fostering fair trade and competition and ensure competitive market for gas
    • Maintain a data bank of information on activities relating to petroleum, petroleum products and natural gas. 
  • Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity established under Electricity Act, 2003.
  • Tags :
  • PNGRB
  • One Nation One Tariff
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