Whenever a person or a family decides to buy a car, they think about its mileage and features. If we talk about mileage and performance then nowadays everyone is giving more importance to performance. It is a fact that a car running on CNG cannot give as good performance as a car running on petrol. This was about performance, now let’s talk about whether is CNG cheaper than petrol.
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Is CNG Cheaper Than Petrol In India?
Earlier CNG used to be cheaper than petrol but due to many reasons now there is not much difference between the two fuels in terms of price. In July 2024, the price of CNG in Delhi had reached Rs 75 and petrol Rs 95. If we talk about Maharashtra, the price of petrol was Rs 106 and CNG was Rs 75.
There is only a difference of 20 to 30 rupees between petrol and CNG. If you look at the record of 2013, there used to be a difference of 40 to 50 rupees. Why has the price of CNG increased so much that it is competing with petrol at this time? We have written some points below in which we have explained why this happened. Let’s read out:
Increase in Petrol and Diesel Prices
As soon as the price of petrol or diesel increases, the price of CNG also increases immediately. This happens because the cost of transportation increases. Money is also spent on making CNG, which can be compensated by increasing the price of CNG.
Increase In Natural Gas Prices
We want to tell you that CNG is produced from natural gas, so if the price of natural gas increases, it will have a direct impact on the price of CNG as well.
Also read: Is it worth buying a CNG car in 2024?
Supply Chain Disruptions
Let us tell you that political instability, tensions, and military conflicts between countries can lead to higher costs for CNG. Additionally, earthquakes, landslides, volcanic eruptions, floods, and hurricanes all these factors affect the price of CNG as well.
Government Policies and Taxes
There are several taxes and policies due to which the price of the CNG increases. If any tax is increased by the government or a subsidy is reduced then the price increases.
Currency Instabilities
Currency fluctuations refer to changes in the value of one currency to another currency.
Operational Costs
Increases in operational costs for city distributors like Indraprastha Gas Ltd and Mahanagar Gas, including expenses for maintenance and infrastructure upgrades, can result in higher CNG prices.
Demand and Supply Dynamics
Changes in the demand and supply balance for natural gas can influence CNG prices. Higher demand with limited supply typically results in price increases.