Switched to CNG to save money? The price advantage is disappearing
CNG has long been promoted as a cheaper alternative to petrol and diesel, as well as a cleaner automotive fuel. But the price advantage is no longer consistent across Indian cities.
CNG prices vary by city and are determined by the respective City Gas Distribution companies, with factors such as the cost of natural gas, transportation and distribution expenses, taxes and pricing structures influencing retail rates. The Petroleum and Natural Gas Regulatory Board regulates the city gas distribution sector and publishes city-wise CNG prices.
As of Sept. 30, CNG was priced at 86.98 rupees per kilogram in New Delhi, 88 rupees in Mumbai, 97.50 rupees in Chennai and 97 rupees in Bengaluru. In Hyderabad, the price was 112 rupees per kilogram.
The price difference between CNG and diesel also varies across cities. While CNG remains cheaper than diesel in several markets, the gap has narrowed or reversed in some places, reducing the potential savings for vehicle owners who switched to the fuel.
CNG use has expanded across India with the growth of city gas distribution networks. Cars, autorickshaws, buses and other commercial vehicles have increasingly adopted the fuel.
| City | CNG (₹/kg) | Diesel (₹/litre) | CNG vs diesel |
|---|---|---|---|
| Hyderabad | 112.00 | 104.23 | CNG costlier by ₹7.77 |
| New Delhi | 86.98 | 95.20 | CNG cheaper |
| Mumbai | 88.00 | 97.83 | CNG cheaper |
| Chennai | 97.50 | 99.55 | CNG cheaper |
| Bengaluru | 97.00 | 99.56 | CNG cheaper |
| Kolkata | 93.50 | 99.82 | CNG cheaper |
| Ahmedabad | 94.02 | 97.92 | CNG cheaper |
| Gurgaon | 92.01 | 95.64 | CNG cheaper |
| Noida | 95.59 | 95.44 | CNG costlier by ₹0.15 |
| Jaipur | 97.50 | 97.78 | CNG cheaper |
| Lucknow | 95.75 | 95.36 | CNG costlier by ₹0.39 |
| Pune | 98.50 | 98.66 | CNG cheaper |
Kochi: CNG now costs more than diesel
In Kochi, the price comparison has shifted in the opposite direction. CNG was priced at 102.50 rupees per kilogram as of Sept. 30, while diesel was 102.45 rupees per litre in Ernakulam. CNG was therefore marginally more expensive than diesel.
The difference marks a significant change from the early years of CNG adoption in Kochi. Four CNG filling stations were inaugurated in March 2018 as part of the city's city gas distribution project.
CNG was considerably cheaper than diesel at the time, making it an attractive option for vehicle owners seeking to lower fuel costs. Its use later expanded among autorickshaws, taxis and other commercial vehicles.
The narrowing price advantage has now changed the economics for vehicle owners who switched to CNG primarily to save on fuel expenses.