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The price of CNG in India varies from city to city, and is revised on a daily basis. CNG price is influenced by several factors, including international crude oil price, exchange rate, and taxes.
In general, the price of CNG in India is relatively high compared to many other countries, primarily due to high taxes levied by the government. Today on February 28th, 2024 the price of CNG in Delhi is ₹76.59 per kg, while in Mumbai, it is ₹76.00 per kg.
International crude oil prices significantly impact the price of CNG in India. India imports a significant portion of its crude oil from other countries. The price of crude oil is determined by global demand and supply factors, including geopolitical tensions, production cuts by oil-producing countries and changes in the global economic landscape.
The exchange rate also plays a crucial role in determining the price of CNG in India. Since crude oil is traded in US dollars, any fluctuation in the exchange rate of the Indian Rupee against the US dollar can have a significant impact on the price of CNG.
To summarize, the price of CNG in India is influenced by several factors, including international crude oil prices, exchange rates and taxes levied by the central and state governments.
Unlike petrol and diesel, CNG is not dependent on crude oil prices. The sources may be oil-based, but the method of extracting and transporting it is different. It is not extracted from crude oil like petrol and diesel.
A common myth about CNG fuel is that it reduces engine life. But in reality, it is not so. If the vehicle comes with a factory-installed CNG kit, it does not reduce the useful life of the engine. Therefore, a petrol car and a CNG car have the same useful life.