India's Revised CBG Pricing Framework Aims for Stability and Affordability

The Indian Ministry of Petroleum and Natural Gas has clarified its revised pricing framework for Compressed Biogas (CBG) under the GOBARdhan Scheme.

The new framework is designed to provide a stable price to CBG producers while minimizing the impact on consumers who use CNG and household PNG.

The procurement price of CBG has been fixed at Rs 2,110 per million British thermal units (MMBtu), an increase of about 43% from the existing rate of Rs 1,478 per MMBtu.

However, the government will provide affordability support of Rs 10 per kg of CBG, equivalent to around Rs 215 per MMBtu for CBG with 95% methane content.

This means that the effective CBG cost to be recovered through gas consumers would be around Rs 1,895 per MMBtu, or about 28% higher than the prevailing price.