CNG may cost a whole lot less in Maharashtra soon. Here's why

Maharashtra Finance Minister Ajit Pawar on Friday proposed a substantial cut in Value Added Tax (VAT) on natural gas - from the 13.5% at present to 3%. The move could make Compressed Natural Gas (CNG) a whole lot cheaper across the state and come as a big relief to owners with vehicles fitted with the alternate-fuel technology. CNG per kilo rate in Mumbai is around ₹66 at present after prices were revised upwards at the start of the year, significantly higher than around ₹43 per kilo in Delhi.

Pawar said that the reduction in VAT would result in a revenue loss of around ₹800 crores each year. But on the flip side, it could be a shot in the arm for vehicle owners, especially with the possibility of a big hike in fuel prices looming owing to rising crude prices in international markets. CNG, apart from the economics, has the added advantage of being a significantly cleaner fuel source than petrol-only or diesel vehicles.

How many CNG stations are there in Maharashtra?

According to data* from Ministry of Petroleum & Natural Gas, there are 423 CNG stations in the entire state of Maharashtra. Gujarat has the highest number with 731 stations while Uttar Pradesh has 384. Delhi NCR region has the highest density of CNG stations, at 424.

What are your CNG car options?

The demand for CNG vehicles has been rising significantly in recent times, aided by skyrocketing fuel prices. While Hyundai and Maruti have been offering company-fitted CNG kits on several of its models for quite some time now, Tata Motors recently entered the fray with CNG kits for Tigor and Tiago.

Company-fitted kits may cost more than getting a kit fitted from local outlets but there are several advantages of investing a bit more at the time of a new car purchase. The respective OEM respects the warranty, get the kits serviced as per procedure and the performance of the vehicle is usually better than a vehicle with kits fitted from elsewhere.