New Delhi, Jan 1 (IANS) GAIL Gas Limited on Thursday announced to reduce the cost of domestic Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) by Rs 1 per SCM (Standard Cubic Meter) and Rs 1 per kg respectively, across all its authorised areas in the country.

The price cut comes into effect from January 1 in GAIL Gas Geographical Areas (GAs) in Uttar Pradesh, Karnataka, Madhya Pradesh, Haryana, Uttarakhand, Jharkhand, Chhattisgarh, Rajasthan and Odisha.

“The Ministry of Petroleum and Natural Gas and the Petroleum and Natural Gas Regulatory Board (PNGRB) continue to implement progressive policy measures that are fostering a favourable and financially sustainable ecosystem for the growth of the CNG and domestic PNG market in India,” said GAIL Gas Chief Executive Officer.

“The recent revision of the Unified Tariff by PNGRB, from January 1, 2026, including the applicability of Zone-1 tariff to City Gas Distribution (CGD) entities for CNG and domestic PNG segments, is set to significantly reduce the transportation cost of natural gas, the GAIL Gas executive added.

The decision to reduce prices is in line with the Government of India’s vision of a gas-based economy and to further encourage the adoption of clean fuels.

GAIL Gas Limited is a wholly owned subsidiary of Maharatna PSU GAIL (India) Limited and is implementing City Gas Distribution networks in 16 Geographical Areas (GAs).

Meanwhile, GAIL (India) Limited, the country’s largest natural gas company, reported a consolidated performance marked by steady revenue growth and improved profitability in the second quarter of FY 2025-26.

According to a recent Crisil report, city gas distribution (CGD) companies in India are projected to clock an operating profit of Rs 7.2–7.5 per standard cubic metre (scm) this fiscal — up 8-12 per cent compared with the second half of last fiscal when margins dropped because of a sudden and steep decline in gas allocation under the administered price mechanism (APM) for the compressed natural gas (CNG) segment.

Consequently, distributors had to take recourse to the spot gas market for supply, which exerted upward pressure on cost. The companies have, thereafter, transitioned to contracted supplies, which is expected to burnish margins.

–IANS

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