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You are planning to buy a Car? Done research on the various parameters including Financial and Technical matters. Done the test drive and firmed up the decision.

And then you realize that your decision, can it be revisited? Is it factoring the emerging new technologies, tightening government regulations on pollution and emission, and the fast-changing times? And addressing the fast-altering fuel and alternate fuel scenarios?

When you, after deciding the model, have to make conclude between Petrol or Diesel or CNG?

Let us try to address this dilemma. Let us ask ourselves some questions and provide some answers!

1. What is the source of fuel supply for each of these fuels?

Ans. India imports 82% of its oil needs. India was the second top net crude oil (including crude oil products) importer of 205.3 Mt in 2019. And we were the third-largest consumer of crude oil in the world, after the United States and China. The Consumption of Fuel is around 205 Million Tonnes per year, while the internal resources are about 35 Million Tonnes per year. Petrol and Diesel prices have been decontrolled, and their prices will fluctuate and be dictated by the International Prices per barrel on a daily basis.

On Natural Gas, India generated 31.7 bcm natural gas locally against the consumption of 58.1 bcm. The largest reserves of natural gas are located in the Eastern Offshore (38.13%) and the Western Offshore (23.33%).. There is a scope of increasing CNG exploration and usage as an alternate fuel in India.

2. How is the supply situation in terms of Pumps for delivery?

Ans. As of 31 March 2018, there were 23 crude oil refineries in India. The total oil refining capacity in India stood at 248 MMT, more than 61000 fuel pumps are delivering Petrol and Diesel in India.

There are 2208 CNG pumps with more than 80% being present in the states of Gujarat/New Delhi/Maharashtra/Uttar Pradesh.

3. Contribution of Diesel vs Petrol Cars in India?

Ans. Diesel Cars contribute to about 11% to 17% of the Portfolio of 2.6 million cars produced in India.

EVs/CNG/Hybris and others contributed less than 3% and the balance was made up of Petrol.

However, the Government policy is strongly supporting the switch to EVs in the long term. The Government is also pushing for adding 10000 CNG pumps by 2030 and effect a massive switch to CNG cars till then.

Major manufacturers including Maruti have already firmed up their plans for manufacturing CNG in the short term and EV cars in the long term.

4. On ground comparison of CNG vs Petrol vs Diesel Cars :



With key OEM's sticking to petrol as a fuel type, and because of the price and value offering, petrol continues to be in demand. Adding to this the current infrastructure with petrol stations across the country makes petrol a more appealing choice. However, with CNG and Electric catching up with higher value offerings and better infra it seems to catch up with the customer's who are willing to experiment.

Consider these reasons and experience the Vehicles by Test Drive, before making a well-informed decision.

Happy Driving !!


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