PNGRB needs GST on CNG autos to be lowered, no excise on CBG

From pegging Goods and Services Tax charge on a par with that on electrical autos to waiving excise responsibility on compression of pure fuel and on the compressed biogas element within the gasoline, India’s Petroleum and Natural Gas Regulatory Board (PNGRB) needs for a clutch of adjustments to speed up compressed pure fuel (CNG) automobile utilization.

It additionally needs sustaining a delta between CNG and petrol costs to maintain the curiosity within the former going, primarily by tweaking excise responsibility charges. Reduction in allocation of CNG at administered costs or underneath the APM stays a priority and will upset the calculations, a doc ready by the oil regulator earlier however made public now confirmed.

Listing the coverage interventions required, PNGRB mentioned the transport section might be a key driver to push up the share of pure fuel in India’s vitality combine to fifteen% by 2030 from the prevailing round 6%. Towards this, it needed GST on CNG autos to be diminished, from 28% to the 5% that levied on EVs.

On adjustments to excise responsibility, the regulator mentioned compression of pure fuel, which is undertaken to fill extra gasoline within the tank and consequently enhance automobile vary, is taken into account as deemed manufacturing. No excise responsibility would translate into decrease CNG costs for shoppers and consequent advantages to the atmosphere from use of the eco-friendly gasoline.

Also with APM allocation headed in the direction of zero in future, discount in excise responsibility is important to maintain CNG aggressive in comparison with different alternate fuels. Full excise responsibility waiver may have a right away influence of ₹6500-7000 crore a yr for the exchequer, however deliver a number of advantages, together with discount in healthcare prices.

On CBG mixing, the regulator mentioned the extra excise and VAT that CBG attracts impacts the ultimate value of CNG.

Earlier this week, the PNGRB Board permitted the Second Amendment to the Natural Gas Pipeline Tariff Regulations, 2025, which included decreasing the variety of Unified Tariff Zones from three to 2 to simplify pure fuel transportation system throughout the nation, ensures a extra equitable tariff construction and improve entry to pure fuel, particularly in under-served areas. It mentioned the good thing about the Unified Zonal Tariff of Zone 1 has been prolonged countrywide to CNG and Piped Natural Gas (PNG) Domestic segments to boost the affordability of the gasoline.