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Old 1st June 2008, 19:51   #1
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Default CNG vs PETROL

I have done arough calculation on the payback period in case of a cng conversion.

Six variables have been considered..cost of petrol,cost of gas,cost of kit,yearly usage,fuel efficiency(gas),fuel efficiency(petrol)

Assumptions:

1.Cost of maintenance assumed at Rs.0.5 per lit

2.Return on investment@15% on cost of not converting to CNG
3.Increase in insurance not considered..humko nahi maloom.

You will find that the payback goes up or down substantially for a very small change in yearly usage.What most people do not calculate is opportunity costs.

This is the first time I am loading a file on TBhp..forgive me if there is a goof up
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File Type: xls CNG vs Petrol.xls (18.0 KB, 4181 views)

Last edited by vigsom : 1st June 2008 at 19:57.
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Old 1st June 2008, 20:01   #2
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Default CNG vs Petrol - Payback

Sorry guys..the wrong file got loaded.Am correcting it.Please ignore the first post

Quote:
Originally Posted by vigsom View Post
I have done arough calculation on the payback period in case of a cng conversion.

Six variables have been considered..cost of petrol,cost of gas,cost of kit,yearly usage,fuel efficiency(gas),fuel efficiency(petrol)

Assumptions:

1.Cost of maintenance assumed at Rs.0.5 per lit

2.Return on investment@15% on cost of not converting to CNG
3.Increase in insurance not considered..humko nahi maloom.

You will find that the payback goes up or down substantially for a very small change in yearly usage.What most people do not calculate is opportunity costs.

This is the first time I am loading a file on TBhp..forgive me if there is a goof up
Attached Files
File Type: xls CNG vs Petrol.xls (18.0 KB, 2623 views)
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Old 1st June 2008, 22:58   #3
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What are you planning to do? Installing the CNG kit in place of Petrol. Just check about the availability of CNG in your city and then proceed. It also depends on what car you are going to install.
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Old 2nd June 2008, 00:58   #4
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Also factor in for the long queues outside CNG bunks (at least in Delhi)
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Old 2nd June 2008, 07:32   #5
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Default CNG vs Petrol - Costs - The Reality

Quote:
Originally Posted by Eddy View Post
Also factor in for the long queues outside CNG bunks (at least in Delhi)
Quote:
Originally Posted by snaronikar View Post
What are you planning to do? Installing the CNG kit in place of Petrol. Just check about the availability of CNG in your city and then proceed. It also depends on what car you are going to install.
The objective of putting this up was only to give TBhp users a detailed calculation of costs involved in this conversion ; most people get carried away by brochures which only look at the savings in running costs.

I was contemplating this conversion in view of the upcoming hike in petrol prices but gave up the idea as at 6000 kms usage,the payback period is astonishingly high.

As far as CNG availability goes,there is plenty in Surat.Also installers have begun doing it on all cars.

Agreed Eddy..the long queues do get on one's nerves.There is a Gas station on the outskirts of Surat near Hazira which dispenses gas at two bucks a kg less than in city ;and people don't mind spending half an hour there !!!
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Old 2nd June 2008, 12:24   #6
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you are taking in 12k as the yearly usage. But CNG kit is not advisable for that. If you use you are car around 50-80km daily, then only it is advisable. This means atleast 20k a year.

Even though I do not do this distance daily, but I end up doing lot of long trips, and curbing lot of trips due to fuel cost, CNG is decent enough for me.
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Old 2nd June 2008, 21:44   #7
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Agreed Shashank.

When CNG was introduced here sometime in 2002,kits were being offered by TVS Transenergy at 12k.Most people were sceptical and therefore did not try.The ones who went ahead benefited.By the time others realised,kit prices were at 35k and never came down after that.

Yes,the kit is priced so high that it makes sense to go in for this mod only if the yearly usage is approx 20k.
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Old 1st August 2013, 15:00   #8
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Default Re: CNG vs PETROL

CNG cost recovered in < 1 year even when driving 9K kms/year.
40K savings every additional year.
CNG clear winner
Calculation attached
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File Type: xls CNG vs Petrol.xls (21.5 KB, 1304 views)
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