Top News

Budget 2026: The way is clear to make CNG cheaper, Finance Minister gave a big gift in excise duty.

Samira Vishwas | February 1, 2026 10:24 PM CST

Excise Duty on CNG: Union Finance Minister Nirmala Sitharaman, while presenting the budget for the financial year 2026–27 in the Parliament, has made an important announcement providing direct relief to the common people. In the budget, a major change has been proposed in the rules for calculating central excise duty on CNG blended with biogas.

Now, while determining the excise duty on bio-mix CNG, the entire value of biogas will be excluded from the calculation, which will reduce the tax burden on this fuel and its price is expected to reduce.

Price of CNG will decrease!

Finance Minister Nirmala Sitharaman clarified in her budget speech that earlier while fixing the price of biogas blended CNG, excise duty was also levied on the part of biogas included in it. This made the mixed fuel relatively expensive. Under the new proposal, the biogas component will be completely exempted from excise duty. Its direct effect will be that the more biogas is mixed with CNG, the less will be the tax and the price will reduce.

These people will get relief from the decision

With this step of the government, CNG is likely to become cheaper. According to experts, the price of CNG per kg may decrease by about Rs 2 to 3. At present, excise duty on normal CNG is around 14% or Rs 14–15 per kg. Due to reduction in tax due to biogas mix, consumers of auto-rickshaws, taxis, commercial vehicles, trucks and private cars will get relief in daily fuel expenses.

Farmers will also benefit

This decision is considered beneficial not only for the consumers but also for the farmers. Through biogas plants, farmers can earn additional income by making biogas from stubble, crop residue, animal waste and other organic waste. This will reduce the problem of stubble burning, reduce air pollution and strengthen the rural economy. Also, increasing domestic biogas production can also reduce the country’s dependence on oil and gas imports.

This step is also good news for the automobile sector. Many vehicle manufacturers are already launching biogas and CNG-compatible vehicles in the market. With tax relief, the demand for such vehicles is expected to increase and the availability of bio-mix CNG may also increase rapidly.

People’s fuel expenses will reduce

Biogas is prepared from agricultural residues, crop waste, cow dung and organic waste. By mixing it with CNG, Bio-CNG or CBG is made, which is cleaner and has less carbon emissions than traditional fuel. The government says that this decision is an important step towards green energy, environmental protection and sustainable development goals, which will reduce the fuel expenditure of the common people as well as promote clean energy.

Budget 2026: What is TCS? Finance Minister Nirmala Sitharaman used this word in the budget speech; Regarding the announced TCS cut…

The post Budget 2026: The way to make CNG cheaper, Finance Minister gave a big gift in excise duty appeared first on Latest.