Ministry of Petroleum and Natural Gas (MoPNG) revises the Compressed Biogas (CBG) procurement price from Rs 1380/MMBTU to Rs 1478/MMBTU (excluding GST), effective 1st June to 31st October 2025, while the compression charges remain unchanged at Rs 8/kg. The CBG procurement price on weight basis is revised from ~Rs 72.8/kg to Rs 77.4/kg (Delivered upto 50 kms including compression charges of INR 8/kg, excluding GST at 95% methane content). Additionally, transportation support of Rs 1.5/kg for 50-75 km and Rs 2.5/kg (excluding GST) for distances over 75 km, enhances logistics support for producers. This long-awaited revision addresses critical concerns about viability and cash flow, improving investor confidence and operational sustainability.
Y. B. Ramakrishna, Senior Vice President, IFGE & Chairman, CBG Producer Forum, said, “This price correction is a positive step that acknowledges the sector’s challenges. We thank MOPNG & OGMCs for responding to industry feedback and reinforcing confidence in the green gas economy. Revision of FOM/LFOM MDA and Green Gas Certification Policy will make the CBG industry sustainable.
Ashish Kumar, Vice President IFGE, Vice Chairman, CBG Producer Forum, added, “Price stability and security with regards to floor price correction and institutionalising a systematic review/revision process will further improve the CBG Investment case. We appreciate MoPNG’s and OGMC’s efforts in supporting this vital policy shift. Stronger participation and commitment from all Natural Gas stakeholders specifically CGD companies will further strengthen the investment attractiveness of the sector leading to overall progression of this Green Gas “
Sanjay Ganjoo, Director General, IFGE, stated, “This decision signals the government’s commitment to clean energy and circular economy goals. We look forward to continued policy evolution for sectoral growth.”
