Compressed Natural Gas (CNG) is commonly thought of as an economical alternative to conventional automobile fuels like Petrol and Diesel. Now, the eco-friendly fuel substitute has also started following the escalating price trend of other fossil fuels. Currently, its retail rate is touching Rs 99.99 per kg in Nagpur.
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The price of CNG in Nagpur is the highest in the state, perhaps the highest in the country. The main causes include the higher price of diesel and swings in the international market. Additionally, in September this year, the central government increase the price of natural gas by 62 per cent. Also, the government has stopped subsidies for LNG. Since LNG is imported in Nagpur from Gujarat, the recent surge in diesel prices has significantly increased its transportation cost, almost doubling the cost per trip. After transportation, this LNG is converted into CNG by an authorised Compressed Natural Gas refuelling station. This further pushes up its cost by about 100 per kg.
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Currently, Nagpur has three has only three CNG stations (all run by the Rawmatt group) – Automotive Square, Wadi and Khapri. All three stations offer similar prices. The price of CNG has been slowly increasing since September, leading up to an almost 40 per cent rise in CNG prices in just two months. The global prices of LNG are also at the highest ever currently. This has also led to a cut in the import of LNG which contributes to half of India’s gas consumption.
The international market rates have also not shown a decrease for a while now. The primary reasons for this include LNG plant outages, higher carbon prices, and lower than average gas storage in Europe. There has also been an increase in demand post-Covid. Since the beginning of the pandemic last year, the Asia-delivered spot Liquefied Natural Gas (LNG) prices have gone from under $2 mmBtu to $30 per mmBtu. Additionally, big consumers like China and Japan have also been pushing to replenish storage ahead of winter.
This sudden increase will impact the adoption of Compressed Natural Gas as a fuel in cities like Nagpur. Compared to 23,663 petrol-fuelled autorickshaws, the city has only 10 CNG-fuelled autorickshaws plying within city limits. Now, with the CNG price touching Rs 100 per kg, the monthly budget of autorickshaw drivers and private vehicle users is bound to take a hit. Mileage is the primary reason for people to switch from petrol to CNG. It is said to offer around 40 km per kg, compared to 22 km per litre petrol.
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Currently, one litre of petrol costs around Rs 104. On the other hand, the cost of LPG for vehicles is Rs 78.24 per kg.In cities like Mumbai and Delhi, CNG is currently available at almost half the price (49.40 per kg in Mumbai and at 43.40 per kg in New Delhi). Both metros have a huge adoption of CNG vehicles.
The post CNG Costs Rs 100/kg In This Indian City – FULL DETAILS appeared first on Car Blog India.
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