Hike in CNG price may halt green initiative

Published On May 22, 2010 07:37 PM By Ritesh for Toyota Innova

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The price of Compressed Natural Gas (CNG) is expected to be increased by about 20 percent due to an increase in the price of natural gas in India. The news came at a time when major car makers in India are eying to use greener technologies in their cars with developing factory fitted CNG models.

At present, about half a dozen popular cars in India are available with a factory fitted CNG kit, that includes Chevrolet Aveo, Mahindra Logan, Hyundai Accent, Toyota Innova and Corolla Altis. The CNG-run vehicles account for a very low percentage of total car sales in India as the adequate infrastructure for this fuel type is yet to be established in most of the Indian cities. At present, the sell of luxury cars is limited to cities like Delhi, Mumbai and recently joined Ahamadabad.

In the national capital, the CNG would be available at Rs 26.28 a kg as against the existing rate of Rs 21.9 per Kg, after the implementation of the prospective 20% hike. However, even after this hike the CNG will remain much economical than current rates of Petrol and Diesel in Delhi. At present about 680,000 lakh CNG cars and autos, 12,000 buses and a mere 700 CNG trucks are running on Indian roads, most of which are registered in national capital.

According to Mr R C Bhargava, chairman, Maruti Suzuki India, the CNG would continue to be far cheaper than other fuel options. I don’t think CNG vehicles would be any less attractive in the future.