India aims to reduce diesel use with $1.35-billion LNG retail push

Indian companies will spend 100 billion rupees ($1.35 billion) over three years on 1,000 liquefied natural gas (LNG) stations along main roads and industrial corridors and in mining areas, the oil minister said on Thursday, to cut diesel consumption.

Diesel, which accounts for about two-fifth of India’s refined fuels consumption, is widely used by buses, truck and in the mining sector.

“Even if the LNG vehicle segment achieves 10% market share in a fleet of 10 million trucks, it will have a positive impact on reducing emissions and substituting crude,” Dharmendra Pradhan said at a foundation-laying ceremony for 50 LNG stations.

Use of LNG in heavy vehicles will cut fuel costs by 40% compared with diesel and help contain inflation, he said, and urged automobile makers to look at producing LNG-compatible vehicles.