India's 43% CBG Price Hike Won't Directly Hit Consumers, Says Petroleum Ministry

The Indian government has raised the procurement price of Compressed Biogas (CBG) by around 43% to Rs 2,110 per million British thermal units (MMBtu). This move has sparked concerns about the potential impact on CNG and household piped natural gas (PNG) prices.

The Ministry of Petroleum and Natural Gas responded to these concerns by stating that the revised CBG price would not directly result in a similar increase for consumers. The ministry explained that the government will bear part of the additional cost, while the remaining cost will be spread across a much larger pool of domestic gas.

Under the new framework, the effective cost works out to around Rs 1,895 per MMBtu, compared with the prevailing Rs 1,478 per MMBtu. This brings the effective increase down to around 28%.