Budget 2026: Union Finance Minister Nirmala Sitharaman, while presenting the budget for the financial year 2026-27 in Parliament today, has announced a big relief for the common man. In the budget, it has been proposed to exclude the entire value of biogas from the calculation of central excise duty on CNG blended with biogas. With this, bio-mix CNG can become cheaper.
The Finance Minister clearly stated in his budget speech, “The entire value of biogas will be excluded while calculating the Central Excise Duty on Biogas Blended CNG.” Earlier, the price of biogas was also included in the calculation of this mixed fuel, which increased the tax burden. Now with this change the biogas component will be completely exempted from excise duty.
CNG will become cheaper!
This step of the government is related to the goals of promoting clean energy, environmental protection and energy security. This will directly benefit the owners of CNG dependent vehicles, especially auto-rickshaws, taxis, commercial trucks and cars.
Experts estimate that the price of CNG per kg may come down by a few rupees (about Rs 2-3), because the excise duty on normal CNG is around 14% or Rs 14-15 per kg. The higher the percentage of biogas in the biogas mix, the lower will be the tax.
benefits to farmers
This decision will prove to be a boon for the farmers also. With biogas plants, farmers will be able to earn additional income from their farm waste, stubble and other wastes. This will reduce the problem of stubble burning, reduce air pollution and strengthen the rural economy. Also, the country's dependence on oil imports will reduce because domestic biogas production will increase.
Good news for auto industry
This change will also have a positive impact on the automobile sector. Many companies are already launching biogas-compatible vehicles. Tax relief will increase the demand for these vehicles and the availability of bio-mix CNG at CNG stations may also increase rapidly.
The government says that this step will accelerate the green energy transition and make an important contribution towards the Sustainable Development Goals. For common consumers, this is one of the most practical reliefs of the budget, which will reduce fuel expenses in everyday life.
What is biogas and its importance
Biogas is made from agricultural residues, crop waste, animal dung, municipal waste and other organic wastes. By mixing it with normal CNG, low carbon eco-friendly fuel is prepared, which is called Bio-CNG or CBG (Compressed Biogas). This fuel is cleaner than traditional CNG and significantly reduces carbon emissions.