CNG sales in state dipped by 32% in April-Sept

Ahmedabad: The sales of compressed natural gas (CNG) declined by 32% across Gujarat during the first two quarters of the current fiscal. Consumption, however, has recovered in the third quarter, but it is yet to reach pre-Covid levels. The provisional sales of CNG within the state stood at 252 TMT (thousand metric tonnes) in April-September 2020, substantially down in comparison to the sales of 367 TMT for the same period in 2019, shows a report by the Petroleum Planning and Analysis Cell (PPAC) of the Union ministry of petroleum and natural gas (MoPNG The CNG sales are primarily driven by autorickshaws, school vans, public transport, and cabs, including those operated by aggregators. All these modes of transport, according to the industry players, were hit hard due to the lockdown and subsequent restrictions to curb the spread of coronavirus. The reduction in tourism activity coupled with the Covid-19 induced slowdown further dented the CNG sales. “The CNG sales were adversely impacted as a large number of rickshaws remained off-road during April-September period,” said Arvind Thakkar, president, Federation of Gujarat State Petroleum Dealers Associations (FGPDA). Rickshaws account for a significant chunk of CNG consumption. “At least 70% autorickshaws shuttle on select routes ferrying multiple passengers for little cost. People have stopped moving out frequently or at least reduced their preference for autorickshaws. This leaves meagre earnings for autorickshaw drivers in Ahmedabad and the number of rickshaws ferrying on roads has declined,” said Rajvir Upadhyay, president, Jagrut Autorickshaw Drivers’ Union. “Apart from autos, CNG is widely used in vehicles, especially for vans ferrying school students. These have stopped since schools were closed. Tourism activity is also subdued, which has further contributed to the dampened sales of CNG,” he added. The impact on CNG sales was higher in cities such as Ahmedabad, Vadodara, Surat and Rajkot than in smaller towns and rural areas of the state, said industry players. The CNG consumption, however, has now started improving since September. According to Adani Total Gas Limited, one of the leading city gas distribution companies in India, its CNG sales were down by only 9% in the third quarter ended December 2020. The drop was steeper at 21% and 66% in the second and first quarter, respectively. At 709, Gujarat has the highest number of CNG stations in the country. With public movement gradually increasing following the reduction in Covid-19 cases and steady recovery in economy, the CNG sales are expected to get normalized from April, said market experts

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