Green fuel loses price advantage in Delhi
30 May 2012 1:29 AM GMT
With the government constantly increasing the price of Compressed Natural Gas (CNG), the green fuel is gradually losing popularity as cheap fuel in Delhi. After the recent announcement of the Delhi chief minister Sheila Dikshit, CNG costs only Rs 3.69 less than its closest competitor diesel.
In June 2010, the price of CNG in Delhi was Rs 21.90 per kilogramme, which was almost half the diesel price per litre at that time, which stood at Rs 40.1 per litre. The price of diesel came down to Rs 37.75 on 2 November 2010 but went up again to Rs 41.12 on 1 July 2011. It reached its present price of Rs 41.29 per litre on 1 October 2011.
Meanwhile, CNG’s price was on an upward climb reaching the current Rs 35.45 per kilogramme. Soon, it would be Rs 37.22 per kilogramme. It has increased by over 69 per cent since 2010.
And, in the last eight months, the price has been increased four times.
‘The operational cost of CNG in early 2010 was around Rs 1 per kilometre in small vehicles. But, now it is around Rs 1.80, almost at par with diesel vehicles for which the fuel cost is Rs 2 per kilometre,’ said Ravindra Nath, a transport operator in the city. ‘Further, the life of CNG vehicles is less than that of diesel vehicles and the risk of fire is also high so we prefer diesel over CNG,’ added Nath. Add to this the fact that a CNG vehicle costs much more than a diesel vehicle.
‘The government is gradually pushing the city towards pollution. It must do away the VAT on CNG or this will fuel a hike in the fares of buses, autos, taxis and transportation cost of commodities within the city, which will increase prices of all essential commodities,’ said Vijender Gupta, the Delhi state BJP president.
The taxi associations have also declared a massive protest on Thursday against the increasing price of CNG.
In June 2010, the price of CNG in Delhi was Rs 21.90 per kilogramme, which was almost half the diesel price per litre at that time, which stood at Rs 40.1 per litre. The price of diesel came down to Rs 37.75 on 2 November 2010 but went up again to Rs 41.12 on 1 July 2011. It reached its present price of Rs 41.29 per litre on 1 October 2011.
Meanwhile, CNG’s price was on an upward climb reaching the current Rs 35.45 per kilogramme. Soon, it would be Rs 37.22 per kilogramme. It has increased by over 69 per cent since 2010.
And, in the last eight months, the price has been increased four times.
‘The operational cost of CNG in early 2010 was around Rs 1 per kilometre in small vehicles. But, now it is around Rs 1.80, almost at par with diesel vehicles for which the fuel cost is Rs 2 per kilometre,’ said Ravindra Nath, a transport operator in the city. ‘Further, the life of CNG vehicles is less than that of diesel vehicles and the risk of fire is also high so we prefer diesel over CNG,’ added Nath. Add to this the fact that a CNG vehicle costs much more than a diesel vehicle.
‘The government is gradually pushing the city towards pollution. It must do away the VAT on CNG or this will fuel a hike in the fares of buses, autos, taxis and transportation cost of commodities within the city, which will increase prices of all essential commodities,’ said Vijender Gupta, the Delhi state BJP president.
The taxi associations have also declared a massive protest on Thursday against the increasing price of CNG.
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