PNGRB tariff reform
Shares of city gas distributors rose after PNGRB approved amendments to the Natural Gas Pipeline Tariff Regulations 2025, reducing tariff zones from three to two. Mahanagar Gas and Indraprastha Gas saw intraday gains on hopes of improved pricing and efficiency.
PNGRB has earlier dividend the national gas grid into three tariff zones for the unified tariff regime and to reduce the impact of distance on gas prices.
Zone 1: Up to 300 km from the gas source.
Zone 2: From 300 km to 1200 km from the gas source.
Zone 3: Beyond 1200 km from the gas source.
Another key reform announced today is that pipeline operators will now be required to procure at least 75% of their system-use gas through long-term contracts of three years or more. Besides this, operators with more than 75% pipeline utilisation will be required to allocate 50% of their post-tax earnings to infrastructure development, while the remaining 50% will be returned to consumers via tariff adjustments.
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