The go-green drive might not come as easy as expected. The international natural gas crises is hitting India in full swing. Where CNG prices last year in February stood at ₹49.40, they have now hit a record high of ₹89.50 per kg. In a span of 21 months, CNG prices in Mumbai have risen by 81% i.e ₹41.10 per kg. This poses a great threat to the low cost-of-ownership that CNG vehicles offer and is something that manufacturers bank on.

Compressed natural gas (CNG) vehicles operate much like gasoline-powered vehicles with spark-ignited internal combustion engines. Until now, low cost of CNG has been a compelling reason for commuters to chose them over petrol/diesel counterparts. 

As on November 5, the petrol prices in Mumbai stand at ₹106.29 and diesel at ₹94.25 per litre. At ₹89.50 per kg, the price difference of CNG versus petrol has reduced to 16.79, while against diesel it is just ₹4.75.

However, if one takes into account CNG’s inherently higher fuel efficiency, which is 1.5 times that of petrol, it still offers increased savings. Now, with the price differential coming down fast, the lower cost of ownership of CNG vehicles is also coming under the scanner.