Shortages hobble India push for cleaner car fuel amid Delhi smog
India is cutting back its supply of cheap gas for vehicles as it struggles to cope with domestic production shortages, a move that could add to toxic air woes in major Supply constraints have left retailers like Indrapra Gas Ltd. increasingly reliant on more expensive im from new Indian elds, which have proven more te have begun to raise prices for compressed natural g buses, taxis and rickshaws across India. New Delhi, one of the world’s most polluted cities, was pushed into CNG well over two de ruling that demanded the conversion of all public buses to cope with worsening air qualit cabs in the capital region. While the fuel is not entirely “green,” it does emit fewer smog-re slightly lower carbon footprint than conventional alternatives Now, as the city lives through some of the most toxic smog days on record, proponents fea attracted by low running costs may begin to look more closely at the disadvantages, includ stations and fewer models to choose from. “This may deter the adoption of CNG vehicles and could even lead to a shift back to diesel to promote cleaner transportation options,” said Amit Bhatt, managing director for India Clean Transportation. CNG vehicles have proven popular with India’s price-sensitive consumers, surging more t now. Sales of vehicles powered by diesel and gasoline have fallen by 20% and 13%, respect according to data compiled by the transport ministry. “We need dierential pricing policy to incentivize cleaner fuels and disincentivize polluti Roychowdhury, executive director at the Centre for Science and Environment. With its limited low-cost gas funneled to industrial use, India’s deliveries to retailers have according to exchange lings by the companies. That fuel, from older elds, is currently pr thermal units — against about $10 for new local elds and $13 to $14 per mmbtu for impo Mahanagar Gas has said it will explore options as it tries to ensure stability for its price-se has already pushed prices for some areas up by more than 2% this week. Further increases margins, analysts say. India wants to increase the role of gas in the energy mix, and the government has announ increase the number of CNG stations across the country over the current decade from rou north and west. That target may now be at risk. “The move also doesn’t gel with the government’s aim to almost triple the compressed na country by 2030,” said Sabri Hazarika, analyst with India's Gas Production Hasn't Kept Pace With Demand | LNG imports are now rising to m The underlying problem is the paucity of India’s homegrown output, which has not kept p Daily gas production has risen only about 3% in the decade through March, while consum according to the oil ministry. That has been felt by consumers, with CNG prices in Delhi rising 73% since 2021. Gasoline increased by close to a fth, shrinking the price gap between gas and conventional fuels. “Lower prices have been working in our favor, despite long waiting times at fuel stations,” driver who was getting fuel for his car at a CNG outlet in New Delhi. “But if our costs jump