NEW DELHI — Clarifying media reports regarding potential consumer cost increases under the GOBARdhan Scheme, the Ministry of Petroleum and Natural Gas (MoPNG) stated that the revised Compressed Biogas (CBG) pricing mechanism will provide sustainable procurement margins for producers without imposing a material financial burden on CNG and household PNG consumers.
The clarification addresses concerns that fixing the CBG procurement price at ₹2,110 per MMBtu would directly escalate retail fuel tariffs.
Key Highlights of the CBG Pricing Adjustment
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Procurement Price Revision: The procurement rate paid to CBG producers under the GOBARdhan Scheme has been set at ₹2,110 per MMBtu, compared to the earlier benchmark of ~₹1,478 per MMBtu (indexed at 85% of CNG retail selling price).
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Government Affordability Support: To insulate end-consumers, the Central Government will absorb ₹10 per kg of CBG—equivalent to approximately ₹215 per MMBtu for 95% methane-content biogas—reducing the net cost for pool recovery to ~₹1,895 per MMBtu (a net effective increase of ~28%).
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Expanded Gas Pooling Mechanism: Unlike the earlier framework where CBG costs were absorbed solely by APM gas allocations for domestic PNG and CNG transport, the net cost will now be distributed across a domestic gas base 2.5 to 3 times larger, diluting the per-unit impact on individual consumers to a negligible level.
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Dual Objective: The Ministry emphasized that the policy strikes a balance between guaranteeing financial viability for bio-CBG plant developers and safeguarding domestic and commercial gas consumers against price shocks.
