CNG Price Hike: Effect of 70% increase in CNG prices, use of CNG in vehicles decreasing

CNG Price Hike: In the last one year, due to the increase in the prices of CNG, there has been a decrease in the use of CNG in the country. According to a report, there has been a huge increase in the prices of natural gas, after which the use of CNG vehicles has decreased.

CNG became costlier by more than 70 percent

Rating agency Incra has released a report in which the agency has said that the increase in the prices of natural gas has reduced the use of CNG in commercial vehicles to 9 to 10 percent in the current financial year 2022-23, while earlier this ratio was 16 percent. used to do. The rating agency has said in the report that due to the increase in the prices of natural gas globally, the prices of CNG have increased by 70 percent in the last one year. Due to this, the price difference between diesel and CNG has reduced considerably due to which people have started refraining from moving towards CNG vehicles.

Reduction in CNG usage

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ICRA Ratings said in a statement that due to the increase in CNG prices, the savings in operating costs due to the use of CNG vehicles have not been significant as compared to diesel. Due to this, the use of CNG in medium domestic commercial vehicles has seen a decline in the current financial year, especially in the medium commercial truck segment.

Cars living on dwindling CNG

The rating agency said, “The share of CNG-run vehicles in total vehicles has also come down from 38 per cent in FY 2021-22 to 27 per cent in the first eight months of 2022-23.” However, CNG is still being used in the passenger segment. Icra said that the process of increasing the use of electric vehicles along with CNG is expected to continue further.

CNG 73 percent costlier in 14 months

Let us tell you that before October 1, 2021, CNG was available in the capital Delhi for Rs 45.5 per kg. But now CNG is available at Rs 78.61 per kg. That is, in 14 months, CNG has become costlier by Rs 33.11 per kg i.e. 73 per cent. Obviously, this increase in CNG prices has spoiled the budget of commercial vehicle owners using CNG.

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