The Ministry of Petroleum and Natural Gas clarifies that the revised pricing framework for Compressed Biogas (CBG) under the GOBARdhan Scheme is designed to ensure stability for producers without burdening consumers.
In a recent clarification, the Ministry of Petroleum and Natural Gas stated that the revised pricing framework for Compressed Biogas (CBG) under the GOBARdhan Scheme has been meticulously designed to maintain a stable and viable price for CBG producers while minimizing any potential impact on consumers.
The ministry explained that the procurement price paid to CBG producers has increased from approximately 1 thousand 478 rupees per Million British thermal units (MMBtu) under the existing system to 2,110 rupees per MMBtu under the GOBARdhan Scheme. However, this increase is offset by Government-provided affordability support of 10 rupees per kilogram of CBG, reducing the effective cost to approximately 1,895 rupees per MMBtu.
Furthermore, CBG will be pooled with other domestically produced natural gas, allowing its net cost to be distributed across a significantly larger domestic gas pool. This wider pooling mechanism is expected to substantially minimize the impact on individual Compressed Natural Gas (CNG) and household Piped Natural Gas (PNG) consumers.
The ministry also emphasized that the revised pricing framework is carefully balanced, aiming to ensure a stable price for CBG producers while providing protection against any material increase in prices for consumers.
Source:
Akashvani News
