CNG to Get Cheaper: Finance Minister Removes Excise Duty on Biogas Blended Fuel

• Finance Minister Nirmala Sitharaman announced the removal of central excise duty on the full value of biogas blended in CNG during the Budget 2026-27 speech.
• This move is expected to reduce CNG prices by approximately 2-3 rupees per kilogram, benefiting vehicle owners, especially auto-rickshaws, taxis, and commercial trucks.
• The decision aims to promote clean energy, protect the environment, and enhance energy security by encouraging biogas production.
• Farmers will benefit by generating additional income from farm waste through biogas plants, which will also help reduce stubble burning and air pollution.
• The automobile sector is expected to see increased demand for biogas-compatible vehicles and a wider availability of bio-mix CNG at stations.

Why It Matters: Excise duty removal on biogas in CNG will make fuel cheaper, boost green energy, and benefit farmers.