New Delhi: Despite the recent hike in compressed natural gas (CNG) price, the green fuel has become more attractive for vehicle owners in the capital with the rise in petrol and diesel prices, view major gas dealers in the country.
"The attraction for CNG remains despite the hike in price by Rs 1.20 following the hike in natural gas price by the government. In fact, compared to other suppliers of CNG, we are continuing to supply CNG at a cheaper price even after the hike," Indraprastha Gas Ltd (IGL) Managing Director A K De said.
Following the government increasing the price of natural gas by 20 percent from Rs 3, 200 per million standard cubic metres (mscm) per day to Rs 3, 840 per mscm for general consumers, the IGL raised the price of only CNG by Rs 1.20 per kg after factoring in the hike in both natural gas price and the transportation cost.
The hike in natural gas price had coincided with the revision in petrol and diesel prices, but escaped public notice as it was done on a very quiet note, official sources admitted.
As a result, CNG is attracting more private vehicle owners in the capital than in the other cities.
"According to market estimate based on kit suppliers and CNG workshops, around 2,000-2,500 vehicles are switching over to CNG every month in the capital," De said.
"Earlier only public transport and government vehicles were opting for CNG but now more and more private vehicles are switching over," he said.
With the Delhi government having stopped fresh registration or renewals of any light commercial vehicles that are not using CNG fuel, another 5,000 vehicles are expected to join the fleet of CNG operated buses, cars and other vehicles.
IGL is currently supplying an average of around 900,000 kg of CNG per day as against around 825,000-830,000 kg per day last year with around 110,000 vehicles operating on the green fuel, which was initially introduced under the Supreme Court's direction.
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