CNG costs have elevated by over 74 p.c over the past 20 months.
With world pure fuel costs rising, a hike in CNG costs in India was to be anticipated too. Mahanagar Gasoline introduced a worth hike of Rs 6 per kg in Mumbai, which is a 7.5 p.c hike. That is the seventh hike this yr and takes the value of the CNG to Rs 86 per kg.
- CNG car gross sales grew 55 p.c in FY2022
- CNG automobiles costlier to keep up too
That is the primary hike since August 17, when CNG costs had been lowered by Rs 6, to Rs 80. This calendar yr (January-December 2022) has additionally witnessed two CNG worth reductions by Rs 6 per kg – one in August, and the opposite on April 1.
|CNG worth rise by 74 p.c in 20 months (Mumbai)|
|Month||Worth per kg|
|October 5, 2022 (up Rs 6 per kg, from Rs 80)||Rs 86|
|August 3, 2022||Rs 86|
|July 13, 2022||Rs 80|
|April 30, 2022||Rs 76|
|April 12, 2022||Rs 72|
|April 5, 2022||Rs 67|
|January 8, 2022||Rs 66|
|December 17, 2022||Rs 63.50|
|November 27, 2022||Rs 61.50|
|October 7, 2021||Rs 57.54|
|July 13, 2021||Rs 51.98|
|February 8, 2021||Rs 49.40|
|CNG worth discount in CY2022|
|August 17, 2022 (by Rs 6 per kg)||Rs 80|
|April 1, 2022 (by Rs 6 per kg)||Rs 60|
Over a 20-month interval, from February 2021 by to September 2022, CNG costs in Mumbai have risen by 74 p.c: from Rs 49.40 per kg to Rs 86 per kg.
On October 1, the Ministry of Petroleum and Pure Gasoline hiked pure fuel costs by 40.50 p.c, neccessitating the most recent worth hike. On October 4, Mahanagar Gasoline mentioned, “The value of domestically produced APM fuel has been revised by Petroleum Pricing & Evaluation Cell [PPAC] with impact from October 1, 2022.”
Worth hike may affect demand for CNG automobiles
The substantial worth distinction between CNG and different fuels has all the time been one of many compelling causes for customers to choose CNG, albeit that’s now decreasing. Nonetheless, if one components in CNG’s inherently larger gasoline effectivity, it nonetheless affords elevated financial savings. Given the excessive costs of petrol and diesel, gross sales of CNG-powered automobiles have been rising over the previous few years, with main producers like Maruti Suzuki, Hyundai Motor India and Tata Motors increasing their CNG portfolio.
In FY2022 (April 2021-March 2022), the passenger car phase noticed CNG-powered automobile gross sales improve near-55 p.c with gross sales of two,65,383 models. They accounted for 8.64 p.c of the full PV gross sales of 30,69,499 models in comparison with a share of 6.30 p.c the yr earlier than.
Will rising CNG costs drive shoppers in direction of EVs?
Whereas it’s tough to say whether or not CNG costs will hold growing, the actual fact stays that CNG car operating prices are considerably decrease. Nonetheless, a couple of challenges stay. Refuelling takes longer resulting from fewer CNG stations, and freeway driving requires further planning by way of attempting to take a route with a CNG station. One additionally has to remember the fact that servicing prices of CNG-powered automobiles are larger in comparison with petrol siblings because the CNG filter requires scheduled substitute in factory-fitted CNG kits.
Automobile consumers now have another choice – electrical automobiles – and though the preliminary value of an EV is larger than a CNG or petrol/diesel mannequin, the decrease operating prices in the long term may be very enticing. With the central and state governments providing a number of subsidies, it’s probably the CNG sector’s loss may very well be the EV phase’s achieve.