Author: PPD Team Date: 20/05/2025
GAIL (India) Limited has revised how it calculates prices for biogas and compressed biogas (CBG) under the CBG-CGD synchronisation scheme. The update follows the Ministry of Petroleum and Natural Gas’s (MoP&NG) supply guidelines dated April 9, 2021.
Under the revised method, the biogas procurement price will now be set at 85 percent of the average retail selling price (RSP) of compressed natural gas slabs. This is an increase from the earlier benchmark of 80 percent. The RSPs used are those of GAIL’s own city gas distribution (CGD) entities, joint ventures, and subsidiaries across India.
GAIL has also introduced new transportation charges for biogas delivered using cascade systems. No charges will apply for one-way distances up to 50 km, as this cost is included in the base procurement price. For distances between 50 and 75 km, producers will receive Rs 1.5 per kg. For distances above 75 km, the rate will be Rs 2.5 per kg. These charges are to be paid by the beneficiary CGD entity.
Based on this revised pricing model, the updated biogas price under the scheme is now set at Rs 1,478 per metric million British thermal unit (MMBTU), excluding GST. This new price will be in effect from June 1, 2025, to October 31, 2025. The floor price remains unchanged at Rs 770 per MMBTU.
No other terms of the synchronisation scheme have been changed. GAIL’s internal authority has approved the revisions, and the details have been submitted to MoP&NG for review.