India's CNG Boom Begins: Crisil Predicts Massive Surge as 18,000 Stations Planned

Compressed natural gas (CNG) is set to become the next big fuel revolution in India’s green energy roadmap, according to a new report by Crisil Intelligence. With over 18,000 new CNG stations proposed and licensing opening up access to 12 crore households, the momentum behind the city gas distribution (CGD) sector is stronger than ever.

Driven by rising urban mobility demand, government push, and infrastructure expansion, the CNG sector is poised for explosive growth, Crisil’s latest “City Gas Pulse” report states. The report highlights a strategic shift in India’s energy mix, with CNG emerging as a cleaner and more economical alternative to petrol and diesel.

“Top-performing states will remain the demand anchors, but fresh momentum will emerge from new regions, thanks to private investments, new gas allocation policies, and a sharp rise in vehicle conversions,” the report notes.
India’s broader push for energy transition is also fueling this surge. At COP26, India committed to reducing emissions intensity by 45% and reaching net-zero emissions by 2070. In this context, CNG is becoming central to the government’s strategy to hit a 15% natural gas share in the country’s primary energy mix.

While infrastructure gaps and the end of exclusivity periods are introducing more competition in the CGD sector, Crisil highlights that CNG remains competitive amid pricing pressures and evolving allocation dynamics.
The report also touches on how CNG is expected to complement India’s electric vehicle (EV) push by offering a parallel clean energy option, particularly in areas where EV infrastructure remains underdeveloped.
With green energy now a global priority and India accelerating its transition, Crisil’s insights suggest that CNG is no longer a bridge fuel but a destination in itself.

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