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.
