India, Feb. 1 -- Reflecting India's efforts to transition away from fossil fuels and reduce its dependence on imported natural gas, the Union Budget 2026-27 proposes to exempt central excise duty on the value of biogas or compressed biogas (CBG) contained in blended compressed natural gas (CNG). The move is intended to improve offtake of blended CNG by correcting what industry players describing as double taxation. Until now, both pure and blended CNG attracted a 14 per cent central excise duty, in addition to 5 per cent GST (goods and services tax) and state-level VAT (value-added tax).

India's reliance on imported gas remains substantial. In 2024, it imported liquefied natural gas (LNG) worth $14.98 billion, according to World Bank tra...