In a significant move offering relief to consumers, Adani Total Gas Ltd, the joint venture between the Adani Group and France's TotalEnergies, announced a nationwide reduction in the prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) on Friday, 2 January 2026. The decision, prompted by a regulatory overhaul of pipeline tariffs, will see prices fall by up to ₹4 in various markets.
State-Wise Breakdown of the Price Cuts
The price reduction is not uniform and varies across different geographical areas where the company operates. The cuts are most substantial in regions like Central and Eastern India.
In Gujarat and the Madhya Pradesh-Maharashtra region, CNG prices have been reduced by ₹0.50 to ₹1.90 per kilogram. The cost of domestic PNG in these areas has been lowered by up to ₹1.10 per standard cubic metre (scm).
For consumers in Rajasthan, Punjab, Haryana-NCR, and Northern Madhya Pradesh, the CNG price cut ranges from ₹1.40 to ₹2.55 per kg. Domestic PNG prices here have been reduced between ₹1.10 and ₹4.00 per scm.
The maximum relief has been provided in the Central and Eastern India region, where CNG prices have been slashed by a significant ₹1.81 to ₹4.05 per kg. Domestic PNG prices here are down by up to ₹4.00 per scm.
The Catalyst: PNGRB's Simplified Tariff Structure
This widespread price reduction is a direct consequence of a landmark order from the Petroleum and Natural Gas Regulatory Board (PNGRB). The regulator has overhauled the natural gas pipeline tariff structure to streamline transportation charges and lower input costs for city gas distribution companies.
The key reform involves collapsing the previous three gas transportation zones into just two. A uniform Zone-1 tariff of ₹54 per million British thermal unit (MMBtu), excluding taxes, has now been imposed for the domestic PNG and CNG-Transport segments across the country.
Suresh P Manglani, Executive Director and CEO of Adani Total Gas, welcomed the regulatory move. He stated that PNGRB's initiative to rationalise gas transportation charges directly benefits millions of consumers relying on cleaner fuels for their vehicles and homes. Manglani emphasised that this reform aims to encourage wider adoption of natural gas in households and the transportation sector.
Industry-Wide Impact and Consumer Relief
Adani Total Gas is not alone in passing on the benefits of lower transportation costs. Other major city gas distributors, including GAIL, Indraprastha Gas Ltd (IGL), and Think Gas, have also announced similar price reductions following the PNGRB order.
The company, which operates in 53 geographical areas nationally, serves over 1.2 million households with piped gas and runs a network of nearly 1,100 CNG stations. This price cut, therefore, delivers tangible economic relief to a vast consumer base, easing the burden on family budgets and making cleaner fuel a more attractive option for motorists.
The regulatory reset is seen as a positive step for India's city gas distribution network, potentially accelerating the nation's energy transition by making natural gas more affordable and accessible.
