Fuel price hike in India leads to surge in demand for CNG cars
The fuel prices in India are at an all-time high, with petrol being sold at over ₹100/litre in some states while diesel is over ₹85/litre. This is weighing heavily on people’s monthly budget, compelling them to look for cheaper means of commutation even if it is more time-consuming. But because of the COVID-109 pandemic, people are still wary of using public transportation and are turning towards vehicles with a lower running cost. According to a Mirror Now report, there is an increased demand for CNG vehicles in the country in the wake of increasing prices of petrol and diesel. The sales of CNG vehicles in Maharashtra increased by 375 per cent in the last three months, indicating that people are now gravitating towards cheaper fuel. A surge in demand for CNG vehicles has been witnessed in other states as well.
According to statistics provided by Maharashtra’s transport department, a total of 7,412 units of CNG-cum-petrol vehicles were registered in the state last month as opposed to 6,415 units of CNG-cum-petrol vehicles in December 2020. And as for purely CNG vehicles, 2,288 such vehicles were registered in February 2021 as opposed to 610 CNG vehicles in December 2020. And as for the demand for petrol vehicles in Maharashtra, it dropped by 29 per cent, from 2,10,715 units in December 2020 to 1,49,820 units last month. This makes it certain that the rising fuel prices in the country have started taking a toll on the sales of petrol and diesel vehicles.
The soaring fuel prices have also seen a rise in the demand for electric vehicles as 1,429 EVs were registered in Maharashtra last month as opposed to 1,102 EVs in December 2020. And while the decline in sales of petrol vehicles could be attributed to a variety of factors, an increase in the demand for CNG and electric vehicles implies that buyers are switching to cheaper alternatives as petrol and diesel continue to reach never-before levels in India.