Before we answer question, Why is CNG price up and down. Price of Natural Gas itself is an important reason for this. The cost of CNG often increases that include the rise in natural gas price. This is because natural gas prices are higher at that time and therefore it costs more to produce CNG. Thus, when the cost of natural gas increases in price you can expect CNG prices to increase as well.
COST Departments CNGPRICE Fluctuating Another cause of variation in the price of CNG is transportation costs. As a fuel, CNG needs to be compressed and pumped into special tanks before it can be brought out of the fill up at gas pumps. Instead of preventing all costs through taxation, if the cost to move CNG into those stations increases that will result in higher prices for customers at the pump. Therefore, CNG prices have a significant component of both production and transportation costs.
Even though the price of CNG can change, it is considered a more practical option as fuel alternative to conventional fuels. Because natural gas is — at current prices more often than not — cheaper to buy as CNG feedstock that gasoline or diesel. Therefore, despite the increase in CNG price is usually still more convenient than using petrol or diesel which has been popular with many people.
Cars and trucks running on CNG also have superior fuel economy in addition to this. This gives them a greater range on CNG than typical gasoline or diesel-fuel vehicles. Which...in a nutshell means that if you have CNG car, you can drive on and go further before stopping to the fuel pump. This could save you both time and money ultimately!
Nevertheless, it pays to remember that CNG costs never mimic oil expenditures completely. Popular Post* Sometimes CNG prices can fall above or below; By way of example, there may be factors other than oil prices drastically increasing the cost of CNG due to things in natural gas production/transport costing differently.
Cost-EffectivenessVis a Vis Petrol & Diesel: While costs of CNG is less than petrol and diesel, remember that the fuel price at NHAI's pump will never be same as shown in IOCL or BP outlets. We also need to keep in mind what is the range we get from a tank full of each of these fuels. We thus will be able to ascertain whether the cheaper fuel option trumps that at last.
In addition, CNG vehicles typically require lower maintenance compared to gasoline or diesel duty cycles. The reason for this is that natural gas burns cleaner thus there isn't nearly as much wear through the engine. Decreased maintenance costs can translate into even more savings down the road, which only makes CNG a better pick.
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