Operationalizing India's Gas-Based Economy: UPSC Current Affairs Story Arc

Overview

This arc tracks the strategic operationalization of India's gas-based economy through the 'One Nation, One Grid, One Tariff' framework. It begins with PNGRB's 2025 reforms that simplified natural gas transport costs by unifying tariff zones, effectively making gas cheaper for distant consumers. These regulatory changes provided the structural incentive for infrastructure expansion, evidenced by the growth to 1,60,61,757 PNG connections by November 2025. The arc culminates in January 2026 with the launch of National PNG Drive 2.0, a coordinated effort to leverage these reforms to accelerate the clean energy transition and integrate the national gas grid.

How This Story Evolved

PNGRB reforms tariffs (One Nation, One Grid) → Infrastructure status update → National PNG Drive 2.0 launches leveraging these reforms

1. 2025-07-05: PNGRB Approves Reforms to Natural Gas Pipeline Tariff Regulations
   More details

   UPSC Angle: PNGRB reforms to natural gas pipeline tariff regulations support 'One Nation One Grid'.

   Key Facts:

   • Regulatory Body: Petroleum and Natural Gas Regulatory Board (PNGRB)
   • Amendments: To the Natural Gas Pipeline Tariff Regulations, 2025
   • Reduction of Unified Tariff Zones: From three to two
   • Extension: Nationwide extension of lower unified tariff (Zone 1) for CNG and PNG
   • PNGRB approved amendments to Natural Gas Pipeline Tariff Regulations, 2025
   • Aim: simplifying tariffs, improving access
2. 2025-11-30: Domestic PNG Connections Update
   More details

   UPSC Angle: India has 1,60,61,757 domestic PNG connections and 8,527 CNG stations.

   Key Facts:

   • Domestic PNG Connections: 1,60,61,757 Nos.
   • As on 30.11.2025
   • CNG Stations: 8,527 Nos.
   • As on 30.11.2025
3. 2026-01-13: National PNG Drive 2.0
   More details

   UPSC Angle: National PNG Drive 2.0 promotes PNG, CNG, and CGD ecosystem.

   Key Facts:

   • Promote PNG, CNG, and CGD ecosystem
   • Increase natural gas share to 15% by 2030
   • PNGRB's “One Nation, One Grid, One Tariff” framework

Genesis

Trigger

The Petroleum and Natural Gas Regulatory Board (PNGRB) approved major amendments to the Natural Gas Pipeline Tariff Regulations on July 5, 2025.

Why Now

The reform was necessitated by the need to remove 'pancaking' of tariffs (where costs add up as gas moves through multiple pipelines), which made natural gas uncompetitive in regions far from gas sources like Gujarat or the KG Basin.

Historical Context

The 'One Nation, One Grid' vision was first conceptualized to mirror the successes of the National Power Grid, aiming to treat natural gas as a critical utility rather than a localized industrial input.

Key Turning Points

1. [2025-07-05] Simplification of Natural Gas Pipeline Tariff Regulations

   It established the 'Zone 1' benefit across India, removing the cost penalty for distance.

   Before: Three complex tariff zones made gas expensive in remote states. After: Two simplified zones with lower unified tariffs nationwide.

2. [2026-01-13] Launch of National PNG Drive 2.0

   Shifted the focus from mere infrastructure building to active consumer adoption and market promotion.

   Before: Focus was on regulatory groundwork and physical pipeline laying. After: Focus is on operationalizing the grid to reach the 15% energy share goal.

Key Actors and Institutions

Key Institutions

• Petroleum and Natural Gas Regulatory Board (PNGRB)
• Ministry of Petroleum and Natural Gas (MoPNG)
• GAIL (India) Limited
• City Gas Distribution (CGD) Companies

Key Concepts

Unified Tariff (One Nation, One Grid)

A simplified pricing structure for natural gas transportation that replaces multiple distance-based charges with a standardized rate, reducing costs for consumers far from the source.

Current Fact: The number of unified tariff zones was reduced from three to two on July 5, 2025.

Primary Energy Basket

The total range of energy sources (coal, oil, gas, renewables) that a country uses to meet its energy requirements.

Current Fact: India aims to increase the share of natural gas in its primary energy basket to 15% by 2030.

City Gas Distribution (CGD)

The network of pipelines and stations that deliver gas to domestic (PNG), commercial, and transport (CNG) consumers within a specific geographical area.

Current Fact: India reached 1,60,61,757 domestic PNG connections and 8,527 CNG stations as of November 30, 2025.

What Happens Next

Current Status

As of January 13, 2026, the National PNG Drive 2.0 is the active policy vehicle promoting the City Gas Distribution (CGD) ecosystem.

Likely Next

Expected expansion of the unified tariff to include emerging bio-gas and green hydrogen blending into the existing natural gas pipelines.

Wildcards

Global LNG price volatility could dampen consumer shift despite domestic tariff reforms; potential legal challenges from pipeline operators regarding revenue neutrality.

Why UPSC Cares

Syllabus Topics

• Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
• Statutory, regulatory and various quasi-judicial bodies
• Conservation, environmental pollution and degradation

Essay Angles

• India's Transition from a Coal-Based to a Gas-Based Economy: Challenges and Opportunities
• Regulatory Reforms as a Catalyst for Sustainable Infrastructure

Prelims Likely: Yes

Mains Likely: Yes

Trend Signal: rising

Exam Intelligence

Previous Year Question Connections

• Functions of PNGRB including ensuring competitive markets and appeals to APTEL. — This arc demonstrates PNGRB exercising its core function of ensuring a competitive gas market through tariff reform.
• Activities regulated by PNGRB (Refining, storage, distribution, marketing). — The arc focuses on the 'distribution' and 'marketing' aspects of natural gas via the PNG Drive 2.0.

Prelims Angles

• PNGRB is a statutory body under the PNGRB Act, 2006 (not an executive body).
• The 'One Nation, One Grid' unified tariff reduced zones from 3 to 2 in July 2025.
• The specific target for natural gas in the energy basket is 15% by 2030.
• Domestic PNG connections exceeded 1.6 crore by late 2025.

Mains Preparation

Sample Question: Critically analyze the impact of the 'One Nation, One Grid, One Tariff' reform on India's energy security and its commitment to a low-carbon economy. How do initiatives like National PNG Drive 2.0 complement these regulatory changes?

Answer Structure: Intro: Define Gas-based economy and the 15% target → Body 1: Explain the Unified Tariff reform (reducing zones from 3 to 2) and its economic impact on distance-based pricing → Body 2: Growth of CGD infrastructure (1.6Cr connections) as a baseline for energy security → Critical Analysis: Challenges like global price dependency and infrastructure bottlenecks → Way Forward: PNG Drive 2.0 and focus on gas as a bridge fuel.

Essay Topic: The Regulatory Roadmap to India's Clean Energy Future

Textbook Connections

Key Takeaway

India is shifting from infrastructure creation to market optimization by using PNGRB's unified tariff reforms to make natural gas a viable 'bridge fuel' for 15% of its energy needs by 2030.

All Events in This Story (3 items)

1. 2025-07-05 [Economy] — PNGRB Approves Reforms to Natural Gas Pipeline Tariff Regulations
   The Petroleum and Natural Gas Regulatory Board (PNGRB) has approved amendments to the Natural Gas Pipeline Tariff Regulations, 2025, simplifying tariffs and improving access, supporting the "One Nation, One Grid, One Tariff" vision. The number of unified tariff zones has been reduced from three to two, and the benefit of the lower unified tariff under Zone 1 is now extended across India, applying to both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG).
   More details

   UPSC Angle: PNGRB reforms to natural gas pipeline tariff regulations support 'One Nation One Grid'.

   Key Facts:

   • Regulatory Body: Petroleum and Natural Gas Regulatory Board (PNGRB)
   • Amendments: To the Natural Gas Pipeline Tariff Regulations, 2025
   • Reduction of Unified Tariff Zones: From three to two
   • Extension: Nationwide extension of lower unified tariff (Zone 1) for CNG and PNG
   • PNGRB approved amendments to Natural Gas Pipeline Tariff Regulations, 2025
   • Aim: simplifying tariffs, improving access
2. 2025-11-30 [Economy] — Domestic PNG Connections Update
   As of November 30, 2025, India has 1,60,61,757 domestic PNG connections. The number of CNG stations is 8,527.
   More details

   UPSC Angle: India has 1,60,61,757 domestic PNG connections and 8,527 CNG stations.

   Key Facts:

   • Domestic PNG Connections: 1,60,61,757 Nos.
   • As on 30.11.2025
   • CNG Stations: 8,527 Nos.
   • As on 30.11.2025
3. 2026-01-13 [Schemes & Programs] — National PNG Drive 2.0
   National PNG Drive 2.0 aims to promote PNG, CNG, and the City Gas Distribution (CGD) ecosystem to drive India's clean energy transition. The national goal is to increase natural gas share in India's primary energy basket to 15% by 2030 and support a gas-based economy. PNGRB's “One Nation, One Grid, One Tariff” framework standardizes transportation charges, integrates the national gas grid, and reduces costs for consumers.
   More details

   UPSC Angle: National PNG Drive 2.0 promotes PNG, CNG, and CGD ecosystem.

   Key Facts:

   • Promote PNG, CNG, and CGD ecosystem
   • Increase natural gas share to 15% by 2030
   • PNGRB's “One Nation, One Grid, One Tariff” framework