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With fuel prices heading northward, demand for compressed natural gas(CNG) and liquified petroleum gas(LPG) vechicles is all set to grow in the long term. Some of the immediate effects are seen with queries for CNG and LPG variants rising at dealerships, while CNG kit fitters expect a surge in business.
Delhi-based CNG and LPG kit fitter Delhi Auto Spares said that it sells around 200 CNG kits every month and that net size of the CNG kit fitting market in Delhi is around 4000-4500 kits per month. "The government has raised CNG prices by around Rs 5-6 sometime back to around Rs 27.5 per kg in Delhi. Had this price rise not come in, we estimate the demand for CNG kits would have almost doubled in Delhi market with the recent petrol price rise. Even now, we are getting lots of new queries everyday", said Mukesh Garg of Delhi Auto Spares.
After factoring in the recent price rise of CNG, it is still around 56 per cent cheaper than petrol and around 27 per cent cheaper than diesel in Delhi region. The Centre decontrolled petrol prices on June 25 resulting in a Rs 3.5 per litre increase in rates in Delhi and raised diesel prices by Rs 2 a litre and has suggested a potential decontrol of diesel prices in the recent future.
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