The Ministry of Petroleum and Natural Gas has clarified that the revised pricing framework for CBG under the GOBARdhan Scheme aims to provide a stable price to producers while ensuring affordability for consumers.
The Ministry of Petroleum and Natural Gas has provided further details on the revised pricing framework for Compressed Biogas (CBG) under the GOBARdhan Scheme. According to the Ministry, this framework aims to provide a stable and viable price to CBG producers while ensuring that consumers do not face any material increase in Compressed Natural Gas (CNG) and household Piped Natural Gas (PNG) prices.
Under the existing system, the procurement price paid to CBG producers is approximately 1 thousand 478 rupees per Million British thermal units (MMBtu). However, under the revised framework, the procurement price has been increased to 2,110 rupees per MMBtu. To offset this increase and ensure affordability for consumers, the Government will provide an affordability support of 10 rupees per kilogram of CBG, equivalent to around 215 rupees per MMBtu with 95 per cent methane content, reducing the effective cost to approximately 1,895 rupees per MMBtu.
Additionally, CBG will be pooled with other domestically produced natural gas. This wider pooling mechanism will substantially minimise the impact on individual CNG and household PNG consumers as the net cost of CBG will now be distributed across a significantly larger domestic gas pool, approximately 2.5 to 3 times the earlier base.
The Ministry also emphasized that the revised pricing framework has been carefully designed to balance two key objectives. These include ensuring a stable and viable price for CBG producers to enable sustainable plant operations, while Government-funded affordability support and a substantially wider gas pool protect consumers from any material impact on prices.
Source:
Akashvani News
