The number of vehicles opting for compressed natural gas (CNG) is increasing gradually, say industry experts.
In Chennai and Tiruvallur alone, around 35,000 kg of gas is sold in CNG stations. “Manufacturers have been selling more number of CNG vehicles since consumers are convinced that this fuel provides more mileage and is safe,” said an industry source. Correspondingly, the number of gas stations too has been going up, the source said. “Many are under construction and will be commissioned in a couple of months,” he said.
In CNG stations, the space is provided by the oil marketing companies and the gas companies erect the equipment. The dealer only spends on getting the power connection. The dealer sells the gas to motorists and the money is sent to the oil marketing companies who pass it on to the gas supplier. The dealer gets reimbursement even for the electricity used, besides ₹1.80 a kg as commission.
V. Ramesh, proprietor, Amsvee Enterprises, Vallur, said vehicles from other States too come to the stations in their neighbourhood.
“We are witnessing a larger number of commercial vehicles tanking up on CNG. The number of vehicles has gone up despite the increase in CNG rates. Last year, it was ₹53 a kg and at present it is ₹84 a kg. The Ukraine war and international prices have pushed up the prices. Nevertheless, consumers opt for CNG since there is a saving in it for them,” he said.
