In the Union Budget 2026, India has taken another significant step in its clean-fuel journey with the announcement of phased blending of compressed bio-gas (CBG) into both compressed natural gas (CHG) and piped natural gas (PNG) used in transportation.

This move, which follows the earlier introduction of 20 percent ethanol-blended petrol (E20) from April 2025, aims to reduce dependence on fossil fuels, curb carbon emissions, and boost domestic bio-energy production. It also promises to benefit farmers by utilising agricultural waste and helps lower natural gas import bills.

Finance Minister Nirmala Sitharaman emphasized the government's commitment to strengthening India’s electric mobility ecosystem, highlighting efforts to enhance EV manufacturing and expand charging infrastructure. She also announced support for electric buses in public transport, introducing a security framework to encourage their adoption by state and city transport corporations.