Revised CBG pricing supports producers without materially impacting consumers

The Ministry of Petroleum & Natural Gas clarified that the revised pricing of Compressed Biogas (CBG) under the GOBARdhan Scheme supports producers without materially impacting CNG and household PNG consumers. Under the new framework, the procurement price for CBG producers is fixed at ₹2,110 per MMBtu, compared to the earlier system linked to the retail selling price of CNG (approx. ₹1,478 per MMBtu). To prevent a heavy burden on consumers, the Government provides affordability support of ₹10 per kg of CBG (approx. ₹215 per MMBtu), reducing the effective cost to ₹1,895 per MMBtu. Furthermore, the net cost of CBG is pooled across a domestic gas base that is 2.5 to 3 times larger than the previous base, ensuring a negligible price impact on individual consumers.