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Revised CBG pricing to have negligible impact on gas users, says govt

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Revised CBG pricing to have negligible impact on gas users, says govt

Home / Economy / News / Revised CBG pricing to have negligible impact on gas users, says govt

Revised CBG pricing to have negligible impact on gas users, says govt

Government-funded affordability support and a wider domestic gas pool will cushion consumers from the impact of higher procurement prices paid to CBG producers

Sudheer Pal Singh 3 min read Last Updated : Aug 30 2026 | 5:11 PM IST

The Ministry of Petroleum and Natural Gas (MoPNG) has clarified that the revised compressed biogas (CBG) pricing under the GOBARdhan scheme will support producers without materially impacting gas consumers, as the government will fund affordability support and the cost will be spread over a wider pool.

Under the existing system, the price paid to CBG producers is linked to 85 per cent of the retail selling price of compressed natural gas (CNG). Based on the latest revision, this works out to Rs 1,478 per million British thermal units (MMBtu).

Under the GOBARdhan scheme, the CBG price has now been fixed at Rs 2,110 per MMBtu, with the increase from Rs 1,478 to Rs 2,110 per MMBtu working out to around 43 per cent. However, this is the procurement price paid to CBG producers. It is not the price directly paid by CNG or household PNG consumers.

The ministry said the full price of Rs 2,110 per MMBtu will not be recovered through gas consumers, and the government will provide affordability support of Rs 10 per kg of CBG, equivalent to Rs 215 per MMBtu for CBG with 95 per cent methane content.


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