Excise duty exemption on biogas-blended CNG to cut retailers' costs

Exam-focused facts from the 3 February 2026 current affairs briefing.

Key facts

Union Budget FY27 exempts excise duty on the biogas/compressed biogas (CBG) component in blended CNG.
Currently both pure CNG and biogas-blended CNG attract 14% excise duty.
Biogas attracts 5% GST while natural gas is outside the GST framework.
Average share of CBG in CNG is around 1% nationally.
India currently sells about 250,000 kg of CBG per day under its CNG blending programme.
Budget earmarked Rs 9,200 crore for new Ujjwala gas connections next fiscal year against Rs 12,736 crore this fiscal year.
Budget deferred by two years the plan to impose an additional duty of Rs 2 per litre on unblended diesel to April 2028.