{
  "id": 4135397,
  "title": "Govt Dismisses CBG Price Hike Concerns, Says CNG, PNG Impact Minimal",
  "url": "https://urgent.news/2026/08/29/govt-dismisses-cbg-price-hike-concerns-says-cng-png-impact-minimal",
  "topic": "world",
  "section": "World",
  "published": "2026-08-29T06:40:15.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/govt-dismisses-cbg-price-hike-concerns-says-cng-png-impact-minimal"
  },
  "original_language": "en",
  "account": "Government officials have dismissed worries that higher procurement prices for Compressed Biogas (CBG) could sharply raise costs for consumers of CNG and PNG. The Ministry of Petroleum and Natural Gas explained that calculations showing a significant burden on consumers were based on assumptions that were not consistent. They emphasized that the revised CBG procurement rate should not be treated as the price directly paid by consumers.\n\nUnder the current system, the price paid to CBG producers is linked to 85% of the retail selling price of CNG. This results in a procurement price of around ₹1,478 per MMBtu. The new GOBARdhan framework sets the CBG procurement price at ₹2,110 per MMBtu, a 43% increase. However, the ministry clarified that this increase does not mean the same rise in CNG or domestic PNG prices.\n\nThe government will provide affordability support of ₹10 per kg of CBG, equivalent to about ₹215 per MMBtu for gas with 95% methane. After considering this support, the effective CBG cost that can be recovered from gas consumers would be around ₹1,895 per MMBtu, only a 28% rise compared to the current cost of ₹1,478 per MMBtu.\n\nThe ministry also made clear that CBG is not supplied directly to City Gas Distribution companies at its procurement price. Instead, it is pooled with other domestically produced natural gas, spreading the cost across the entire domestic gas pool. Previously, CBG costs were allocated to limited Administered Price Mechanism gas used for transport CNG and domestic PNG. Under the new framework, this cost will be spread across a much larger domestic gas base, making the impact on individual consumers much smaller.",
  "summary": "New Delhi: The government has dismissed concerns that higher procurement prices for Compressed Biogas (CBG) under the GOBARdhan Scheme could sharply increase costs for CNG and household PNG consumers. The Ministry of Petroleum and Natural Gas said calculations suggesting a substantial burden on consumers were based on inconsistent assumptions. It stressed that the revised CBG procurement rate…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}