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Switch to CNG to make your fuel bills inflation-proof

While consumers of petrol and diesel may have to feel the pinch of yet another price hike shortly, those running their cars on compressed natural gas (CNG) are likely to be spared.

business Updated: Nov 03, 2011 22:07 IST
Anupama Airy

While consumers of petrol and diesel may have to feel the pinch of yet another price hike shortly, those running their cars on compressed natural gas (CNG) are likely to be spared.

The price of CNG is unlikely to face a unprecedented hike similar to the other two auto fuels.

“Even at the existing global oil and gas prices as well as the rupee-dollar levels, the price of CNG will not go up beyond Rs 4 a kilo every year for at least the next three years,” Rajesh Vedvyas, outgoing managing director of Indraprastha Gas Ltd (IGL) told HT on the sidelines of the Platts global energy awards event in Singapore. Indraprastha is the largest CNG selling company in Delhi and the National Capital Region.

“The cost of running a B-segment car (Santro range) at the existing CNG price of Rs 32 a kg (in Delhi) is around Rs 1.53 a kilometer against Rs 4.45 per km in case of petrol (currently priced at Rs 66.84 a litre),” said Vedvyas.

In percentage terms, the cost of running CNG-based vehicles is 62% cheaper than petrol and almost 22% cheaper than diesel.

“Even in case of public transport, the cost of running a bus on CNG comes to Rs 9.14 a km compared to Rs 11.68 a km on diesel,” he said.

IGL hiked the price of CNG by Rs 2 a kg in September. Even after the hike, the company had stated that the increase would have a minimal impact on the per km running cost of CNG-based vehicles. For autos and taxis, the running cost would go up by around 6 to 10 paise per km, and for buses, it would mean another 57 paise per km increase in costs.

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