The Ministry of Petroleum and Natural Gas announced the revised pricing for Compressed Biogas (CBG) under the GOBARdhan Scheme, with the CBG procurement price fixed at ₹2,110 per MMBtu, representing an increase of around 43% over the prevailing price. According to reports from Zee News, this translates to approximately ₹1,478 per MMBtu when linked to 85% of CNG retail selling price. The ministry clarified that this procurement price paid to CBG producers does not directly impact CNG or household PNG consumers.
The government will provide affordability support of ₹10 per kg of CBG, equivalent to approximately ₹215 per MMBtu for CBG containing 95% methane. As reported by Business Standard, this support will be funded by the government and will reduce the amount that needs to be recovered through gas consumers. After accounting for government support, the effective CBG cost to be recovered through the gas consumer base would be around ₹1,895 per MMBtu, compared with the prevailing effective price of ₹1,478 per MMBtu. The ministry emphasized that the full price of ₹2,110 per MMBtu will not be recovered through gas consumers, with the government funding the difference.
CNG prices have been increased by ₹3.89 per kg across Delhi-NCR, with the revised rates coming into effect from 6 a.m. on Saturday. According to IANS, following the latest increase, CNG prices in Delhi have risen from ₹83.09 per kg to ₹86.98 per kg. The hike will also apply in several adjoining cities, including Noida and Ghaziabad where CNG will now cost ₹95.59 per kg, and Gurugram where the new price is fixed at ₹92.01 per kg. This latest increase comes after a series of recent hikes, including a ₹2 per kg increase in May 2026 by Indraprastha Gas Limited (IGL), the primary city gas distributor in the National Capital Region.
The ministry has clarified that the revised CBG price will have a negligible impact on gas consumers due to the expanded distribution framework. As reported by Business Standard, the net cost of CBG will be distributed across a domestic gas base that is approximately 2.5 to three times larger than the earlier base. Under the earlier system, CBG cost was spread only across the limited quantity of Administered Price Mechanism (APM) gas allocated to CNG and domestic PNG segments. The expanded distribution base is expected to provide better cost recovery mechanisms for the CBG program under the GOBARdhan Scheme. The ministry stated that CBG is not sold at its procurement price to City Gas Distribution entities, but is pooled with other domestically produced natural gas with costs distributed across the applicable domestic gas pool.
Under the revised framework, the net cost of CBG will be distributed across a domestic gas base that is approximately 2.5 to three times larger than the earlier base. As reported by Zee News, under the earlier framework, the cost of CBG was spread only across the limited quantity of Administered Price Mechanism (APM) gas allocated to the CNG transport and domestic PNG segments. The expanded distribution base is expected to provide better cost recovery mechanisms for the CBG program under the GOBARdhan Scheme. The ministry stated that due to spreading CBG cost over a much larger gas pool, the price impact on an individual gas consumer will be negligible.
