When the price of CNG is reduced

Carbon ranks first among the factors that are making the Earth uninhabitable. Though it is a basic element of life, it is also one that turns the air toxic. Carbon is a major cause of ozone depletion, which leads to global warming and climate change. One of the biggest challenges facing the modern world is air pollution caused by carbon emissions from motor vehicles. As a result, the world is now engaged in a fight against carbon pollution. In this fight, India has announced a target to reduce carbon emissions by 100 crore tonnes over the next five years. However, the country still has a long way to go to reach its goal of net zero emissions by 2070.

As an initial step towards this goal, the Central government is trying to increase the use of natural gas (CNG) across the country to reduce pollution caused by petrol and diesel vehicles. In a move to support this policy, the Petroleum and Natural Gas Regulatory Board has recently approved a unified transportation tariff. As a result, from January 1, the price of Compressed Natural Gas (CNG) used in vehicles and Piped Natural Gas (PNG) used for cooking will be reduced by up to Rs 3 per kilogram. At present, both CNG vehicles and household gas connections through pipelines are largely limited to cities. Steps are needed to speed up the shift from petrol and diesel to natural gas fuels nationwide.

There is a clear need to raise public awareness about air pollution and the importance of reducing carbon emissions. People also need to be made aware of why increasing the use of natural gas is necessary. However, reducing the price of CNG to attract more users is a more practical and effective strategy than awareness campaigns alone, and this is the approach the Centre has chosen. As per the new decision, CNG prices will be reduced by up to Rs 2.50 per kilogram, while PNG prices will fall by up to Rs 1.80 per standard cubic metre. The increasing number of CNG-powered autorickshaws in Kerala is seen as a positive sign.

Compared to petrol and diesel, CNG is more economical. However, CNG auto drivers and other users point out that frequent price hikes by the Centre reduce these benefits. Reducing prices to encourage usage and then gradually increasing them once demand rises is not acceptable. Since the ultimate goal is to reduce air pollution, tax revenue from CNG sales should not be the government’s priority. Along with keeping prices affordable for consumers, tax concessions should also be given to companies as an incentive. This is also essential for increasing the number of CNG filling stations across the country.