Amid rising fuel expenses across various regions, consumers in Chandigarh are set to receive significant relief following a major policy change by the local administration. The Chandigarh administration has officially reduced the Value Added Tax applicable on natural gas, bringing the rate down sharply from 12.5 percent to just 5 percent. According to the official notification, these revised rates became effective starting from the midnight of September 18, 2026. This administrative move directly benefits residents, vehicle owners, and households who depend on compressed natural gas and piped natural gas for their daily energy and commuting needs.
Boosting Infrastructure and Clean Energy Adoption
The substantial drop in VAT is aimed at making natural gas considerably more affordable for end users across the union territory. Authorities expect that this pricing relief will also spur the development and expansion of natural gas infrastructure within the city limits. By encouraging the wider availability and usage of cleaner fuel alternatives, the policy supports broader environmental goals while easing financial pressure on everyday citizens. With the reduction in the cost of natural gas itself, retail prices for both CNG and PNG are projected to decline, offering much-needed respite to household budgets and commercial users alike.
