Amidst the rising prices of petrol and diesel, if any fuel has given some relief to the common man, it is CNG. Now, strengthening this relief further, the government has taken such a decision in Budget 2026, which will directly impact both people’s pockets and the environment. The burning of stubble in the fields, urban waste and the biogas produced from it is no longer just a story of green energy, but it has become a big step towards becoming a cheap fuel. Finance Minister Nirmala Sitharaman has made it more affordable for common consumers by giving a big tax break on biogas mix CNG from the budget stage.
Tax hassle on biogas mix CNG ends
Presenting the Union Budget 2026, the Finance Minister announced that now the entire value of biogas will be excluded while calculating the Central Excise Duty on biogas mix CNG. This clearly means that no excise duty will be imposed on the area where biogas is available. Earlier, the price of biogas was also included in the tax calculation, which increased its cost.
What was the situation before?
Earlier, about 14 percent central excise duty was levied on regular CNG, due to which tax of Rs 14-15 was added to the per kg price. The government had given partial relief in the year 2023, but then only the GST paid on biogas was deducted from the excise. Due to non-exemption on the full value of biogas, the tax burden remained high.
How much cheaper will CNG be now?
After the implementation of the new system, excise duty on the entire value of biogas will become zero. Due to this, the price of biogas mix CNG can be reduced by a few rupees per kg. This relief will directly reach the customers, especially those who use CNG-powered vehicles daily.
less expense, more benefit
This decision will reduce the fuel cost of CNG car, auto and truck drivers. Commercial vehicle operators will get a cheaper and cleaner option than diesel. Besides, the use of biogas will reduce pollution and the country’s dependence on foreign oil will also reduce.
promote green energy
The government believes that this step will not only encourage clean energy, but will also promote better use of agricultural waste and urban waste. Overall, this decision of Budget 2026 can prove to be a strong initiative towards environmental protection along with providing relief to the common man’s pocket.
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