According to a study conducted by TERI with the support of the Petroleum and Natural Gas Regulatory Board (PNGRB), India should not select a single fuel type or technology as a universal replacement. Instead, different technologies should perform different functions depending on the type of vehicle, application areas, and stages of transition.
The study, 'Comparative Assessment of Automotive Fuels in India's Energy Transition,' analyzed gasoline, diesel, CNG, electricity, and LNG across various transport categories: two-wheelers, three-wheelers, private and commercial four-wheelers, Light Commercial Vehicles (LCVs), and heavy trucks. The analysis included cities such as Delhi, Mumbai, Port Mumbai, Surat, Ahmedabad, Guwahati, Lucknow, Bengaluru, Danbad, and Chambal.
It was found that electric vehicles (EVs) currently offer the lowest cost of ownership for two- and three-wheeled transport, while CNG provides a relatively balanced and ready-to-implement solution for a wide range of personal and commercial needs. Furthermore, CNG holds a strong position in passenger cars, taxis, buses, and LCVs, whereas LNG remains particularly relevant for long-haul freight transport.
As part of the study, a primary survey was conducted among 2315 vehicle owners and drivers in 10 locations using stratified random sampling. The survey covered aspects such as vehicle usage, mileage, fuel consumption, maintenance, infrastructure access, fuel and maintenance costs, technological preferences, and readiness for modernization.
Economic considerations emerged as the most significant factor, accounting for 31.49% of the total weight, followed by environmental factors (22.34%) and technical aspects (21.25%). The report emphasized that these weights reflect the importance of accessibility, cost of ownership, and operational economics when selecting technologies.
The study indicated that CNG vehicles have the lowest overall lifecycle emissions among the analyzed options for several segments of passenger and commercial transport. It was also noted that environmental efficiency cannot be judged solely by exhaust emissions, as the performance of EVs depends on electricity generation, battery production, and material requirements.
These findings come amid ongoing discussions about the role of transport and fuel types in air pollution in Delhi-NCR and the effectiveness of past measures. Tarun Kapoor, an advisor to the Prime Minister, stated the need for more reliable data to guide policy, noting that previous interventions were like 'blindsiding efforts.'
Moreover, the study pointed out that electrification does not eliminate energy security risks; it merely shifts dependence from oil towards electricity supply infrastructure, critical minerals, imported automotive components, and battery supply chains.
AK Tiwari, a member of PNGRB, stressed that 'the real policy question is not which fuel should replace all others, but which fuel is best suited for which application, under what operating conditions, and at what stage of India's transition journey.' In conclusion, the study recommended adopting a technology-neutral framework at the national level with differentiated approaches based on transport segment, region, and application, and called for accelerated development of CNG infrastructure and more active use of CBG.