Excise duty exemption on biogas CNG benefits gas retailers
after close1 source ↓written by the desknot a recommendation
- CNG face
- 14% excise duty
- in CNG nationally
- 1% share of CBG
The government’s FY27 budget proposes excise duty exemption on biogas blended with CNG, benefiting gas retailers by lowering costs. Currently, both pure CNG and biogas-blended CNG face a 14% excise duty. With the exemption, the excise duty on the biogas component will be effectively zero, improving margins for retailers like GAIL. However, the overall impact may be limited due to an average 1% share of CBG in CNG nationally.
Not investment advice. For informational purposes only.