Indraprastha Gas Cuts Piped Cooking Gas Prices in Delhi-NCR After Tariff Overhaul

India’s largest city gas distributor, Indraprastha Gas Limited, has announced a reduction in prices of piped natural gas (PNG) used for cooking across Delhi and the National Capital Region, offering relief to households as the new year begins. The revised prices will come into effect from January 1, 2026, the company said, following a regulatory overhaul of pipeline tariffs.

According to the announcement, the price of domestic PNG has been reduced by Rs 0.70 per standard cubic metre (scm). After the cut, cooking gas supplied through pipelines will cost Rs 47.89 per scm in Delhi, Rs 46.70 per scm in Gurugram, and Rs 47.76 per scm in Noida, Greater Noida and Ghaziabad. The revision applies only to household cooking gas and does not affect commercial or industrial consumers.

The price cut comes in the wake of a major reform by the sector regulator, Petroleum and Natural Gas Regulatory Board, which recently revised the way pipeline transportation charges are calculated. The new tariff regime is aimed at simplifying natural gas transportation costs and making them more uniform across the country.

In December, the regulator announced a rationalised pipeline tariff structure that will be effective from January 1, 2026. Under the revised framework, the number of distance-based tariff zones has been reduced from three to two. Pipelines will now be categorised into a zone covering distances up to 300 kilometres and another for distances beyond that. For city gas distribution companies supplying compressed natural gas (CNG) and domestic PNG, a single, lower Zone-1 tariff will apply nationwide, irrespective of the distance from the gas source.

The revised Zone-1 transportation charge has been fixed at around Rs 54 per million British thermal unit, significantly lowering logistics costs for city gas distributors. This reduction in transportation charges has created room for companies like Indraprastha Gas Limited to pass on the benefits to end consumers, particularly households that rely on piped gas for daily cooking needs.

Other city gas players have also started responding to the new tariff regime. Think Gas, for instance, has already announced cuts in CNG and domestic PNG prices in several states ahead of the implementation of the revised pipeline tariffs. Industry observers expect more such announcements from city gas distributors in the coming weeks as the new pricing structure settles in.

Indraprastha Gas Limited said the latest price revision reflects its broader objective of promoting clean energy adoption while keeping costs affordable for consumers. With piped natural gas considered a cleaner alternative to conventional cooking fuels, the company believes lower prices will encourage more households to shift to PNG connections.

The announcement also had a positive impact on the company’s stock. Earlier, a foreign brokerage firm set a target price of Rs 230 for IGL shares, after which the stock rose over five per cent to hit an intraday high of Rs 193.35. Market participants view regulatory clarity on pipeline tariffs as a long-term positive for city gas distributors, as it improves cost visibility and reduces pricing disparities across regions.

As the revised tariff regime takes effect in 2026, consumers in Delhi-NCR are expected to benefit from more stable and competitive gas prices, while city gas companies gain from a more predictable and transparent transportation cost structure.