India Revises CBG Pricing Framework to Support Producers and Consumers

The Indian government has revised the pricing framework for Compressed Biogas (CBG) under the GOBARdhan Scheme to provide a stable price to producers while keeping consumer affordability intact. The new framework sets the procurement price of CBG at ₹2,110 per one million British thermal units (MMBtu), an increase of 43% from the current price of ₹1,478 MMBTU.

The Ministry of Petroleum and Natural Gas clarified that this increased procurement price will not directly impact CNG or household PNG consumers. Instead, the government has provided affordability support of Rs 10 per kg of CBG, equivalent to around ₹215 per MMBtu for CBG with 95% methane content. After accounting for this support, the effective CBG cost to be recovered through gas consumers would be around ₹1,895 per MMBtu.

The revised framework aims to balance the viability of CBG plants with consumer affordability by spreading the cost across a larger domestic gas pool. The ministry stated that the net cost of CBG will now be spread across a pool 2.5-3 times larger than before, which will minimize the impact on individual consumers.