Gujarat: CNG sales cross pre-Covid levels while petrol prices soar

Gujarat: CNG sales cross pre-Covid levels while petrol prices soar

AHMEDABAD: The sales of compressed natural gas (CNG) in Gujarat have bounced back and even surpassed its pre-Covid levels. Soaring petrol and diesel prices, demand growth after easing of curbs imposed due to the second wave of the Covid-19 as well as addition of new stations by city gas distribution (CGD)companies have pushed up CNG sales.

State-run Gujarat Gas Limited (GGL) is currently recording average CNG sale of 13 lakh kilogram (KG) per day across the state, which are 8% higher than the average daily sales of 12 lakh kg in March 2020. The sales had even plummeted to 8 lakh kg a day in May last year amid the nationwide lockdown, according to GGL, which accounts for almost 57% of the around 789 CNG stations in Gujarat.

Adani Total Gas Limited’s (ATGL) CNG sales volume across its network in India rose 7% at 75 million metric standard cubic meter per day (mmscmd) in the quarter ended March 31, 2021. The private sector company had registered CNG sales of 71mmscmd in the corresponding quarter last fiscal, ATGL said in its recent investor presentation “The demand for CNG increased significantly over the past six months, especially since the prices of petrol went up.

People often got their new or old cars fitted with CNG cylinders. There is a vast difference in the prices of CNG and petrol and the mileage is also better and therefore, people prefer CNG more, in a bid to save on costs,” said Dhimant Ghelani, general secretary, Federation of Gujarat Petroleum Dealers’ Association (FGPDA). According to industry estimates, CNG offers 60-65% savings as compared to petrol. While petrol prices have shot up and are hovering around Rs 97.35 per litre, CNG prices in Gujarat have remained stable in the range of Rs 52 to Rs 55 per kg in last nine months or so.

 ATGL on Thursday raised CNG price in Ahmedabad by 68 paise to Rs 55.30 per kg. The saving in CNG, however, is still very high as compared to petrol.

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