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CNG value at an all-time excessive in Mumbai at Rs 89.5 per kg | Autocar India

Written by Sunny Kumar

CNG costs in Mumbai have risen by 81 % within the final 21 months.

The persevering with enhance of world pure gasoline costs signifies that CNG costs in India are additionally persevering with to rise. CNG costs in Mumbai have been hiked once more, this time by Rs 3.5 per kg, and at Rs 89.50 per kg, they’ve hit a file excessive. There have been simply two value reductions this yr – by Rs 6 per kg on each event – with the final one being on August 17.

CNG Worth rise by 81 % in 21 months (Mumbai)
Month Worth per kg
November 5, 2022 Rs 89.50
October 5, 2022 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 value discount in CY2022
August 17, 2022 (by Rs 6 per kg) Rs 80
April 1, 2022 (by Rs 6 per kg) Rs 60

Over the 21 months, from February 8, 2021 by November 4, 2022, CNG costs in Mumbai have risen by 81 % – from Rs 49.40 per kg to Rs 89.50 per kg. That’s an increase of Rs 40.10 per kg of CNG, which critically hampers the low-cost-of-ownership mantra that CNG automobiles provide and is one thing that producers financial institution on.

In the meantime, oil can be on the boil once more and crude oil costs have risen to their highest ranges in practically 4 weeks.

Worth distinction between CNG and petrol/diesel has diminished sharply

Till now, decrease runnings prices of CNG automobiles have all the time been a compelling cause for consumers to decide on them over their petrol or diesel counterparts.

As of November 5, the worth of petrol in Mumbai is Rs 106.29 a litre and diesel is Rs 94.25 a litre. The worth of each fuels have remained unchanged since Might 21, 2022. At Rs 89.50 per kg, the worth differential versus petrol has diminished beneath Rs 20 for the primary time to Rs 16.79, whereas in opposition to diesel it’s Rs 4.75.

Twenty-one months in the past, on February 8, 2021, the worth differential between CNG and petrol was Rs 44.09, given the then CNG value of Rs 49.40 per kg and Rs 93.49 for a litre of petrol in Mumbai. That value distinction is now half of what it was then. 

Nonetheless, if one takes under consideration CNG’s inherently greater gasoline effectivity, which is 1.5 occasions that of petrol, it nonetheless gives elevated financial savings. Now, with the worth differential coming down quick, the decrease price of possession of CNG automobiles can be coming underneath the scanner.

Rising costs might affect CNG vehicles

Because of the rising costs of petrol and diesel, gross sales of CNG-powered vehicles have been on the rise over the previous few years, with automotive producers like Maruti Suzuki, Hyundai and Tata increasing their CNG portfolio.

In FY2022 (April 2021 to March 2022), the passenger car section noticed CNG-powered gross sales clock close to 55 %  progress over final yr with gross sales of 265,383 items.Nonetheless, that progress fee is now slowing down with the constant value hikes in CNG. Nonetheless, some producers stay constructive on CNG.

Will rising CNG costs drive customers in direction of EVs?

It’s troublesome to say whether or not the CNG costs will preserve rising given the sturdy demand for the gasoline in India. Nonetheless, the very fact stays that the working prices are considerably decrease in comparison with petrol or diesel, and CNG vehicles inherently give higher gasoline economic system. 

There are some challenges with CNG although. Refuelling takes longer attributable to fewer CNG stations, and freeway driving requires further planning by way of attempting to take a route with a CNG station. One should additionally keep in mind that servicing prices of CNG-powered vehicles are greater in comparison with petrol vehicles because the CNG filter requires scheduled substitute in factory-fitted CNG kits.

Automobile consumers now have another choice – electrical automobiles – and though the preliminary price of an EV is greater than a CNG or petrol/diesel mannequin, the decrease working prices in the long term make it very enticing. With central and state governments providing a number of subsidies, it’s seemingly the CNG sector’s loss could possibly be the EV section’s achieve.

About the author

Sunny Kumar