India Hikes CBG Price, But Gas Consumers Won't Feel Pinch

The Indian government has revised its pricing framework for compressed biogas (CBG) under the Gobardhan scheme, increasing the procurement price to Rs 2,110 per million British thermal units (mmbtu), a 43% hike from the previous rate of Rs 1,478 per mmbtu.

The Ministry of Petroleum and Natural Gas (MoPNG) clarified that this new price is not directly charged to consumers of compressed natural gas (CNG) or piped natural gas (PNG).

To offset part of the higher procurement cost, the government will provide an affordability support of Rs 10 per kg of CBG, equivalent to Rs 215 per mmbtu for CBG with 95% methane content.

This support will be funded by the government and not entirely recovered from gas consumers, resulting in an effective increase of about 28% over the earlier rate after accounting for the support.