SIAM Wants CNG To Become More Affordable

CNG’s price has been increased by around Rs 30 per kg in over a year

• SIAM’s statement comes after the Centre reduced the excise duty on a litre of petrol and diesel recently. 

• CNG’s price has risen by Rs 28 per kg over the past year.

• At present, CNG costs between Rs 75 and Rs 85 per kg in most metros. 

• There are currently 11 CNG passenger vehicles in the market. 

The Society of Indian Automobile Manufacturers (SIAM) has requested the Centre’s support in lowering the price of CNG. The industry body revealed its concern of high CNG cost in a tweet addressing the reduction of petrol and diesel prices. 

Auto industry also keenly looks forward to similar support on the CNG prices which have seen exponential increase in the last 7 months. Support for CNG prices would help the common man, facilitate public transport and will enable a cleaner environment. (3/3)

— SIAM India (@siamindia) May 22, 2022

The Central government recently reduced the excise duty on petrol by Rs 8 and that of diesel by Rs 6 per litre. Certain State governments also chose to reduce the VAT levied by them on these fuels as well. 

While the retail cost of the two major automotive fuels have been reduced to provide some relief to the average Indian consumer, the buying cost of CNG remains comparatively high as well and SIAM wants the Centre to take notice of the same.

The current CNG prices in some of India’s top cities are as follows:

In most metro cities, CNG costs between Rs 73 and Rs 84 per kg. The fuel’s cost has increased by around Rs 28 per kg in all of the above-mentioned cities. Usually, a CNG car requires 7-8 kilograms for a full tank, which now roughly costs around Rs 600. 

While CNG was already popular in the commercial space, it’s been gaining popularity even in the private segment of late. These models still have relatively lower running costs, but the gap between CNG and petrol has decreased with the latter’s price cut. Lowering of CNG’s price would benefit most forms of intra-city public transport and also control the cost of goods transportation over short distances.

• 10 Most Fuel-efficient CNG Cars You Can Buy In India
• CNG Cars in India Between Rs 5 Lakh to Rs 10 Lakh

Currently, private car buyers have over 10 CNG models to choose from, and they are - the Alto 800, S-Presso, Wagon R, Eeco, Celerio, Dzire and Ertiga from Maruti, Grand i10 Nios and Aura from Hyundai, and the Tata Tigor and Tiago.

More manufacturers, including Kia, are planning to introduce CNG-compliant models in the near future ahead of electrified vehicles which are expected to flood the market toward the end of the decade.