India’s transport sector is undergoing an alternative fuel transition, but the shift is unfolding differently than expected. Instead of a rapid move toward electric mobility, the transition has largely become a CNG-led story. While electric vehicles promise lower operating costs and long-term climate benefits, compressed natural gas has emerged as the preferred alternative fuel across several high-usage segments.
Petrol and diesel still dominate the sector’s energy consumption, accounting for nearly 90 percent of demand. CNG has carved out a growing share, especially among three-wheelers and commercial passenger vehicles, while electricity continues to contribute only a marginal portion. The reasons are largely practical. CNG vehicles are readily available, refuelling infrastructure is familiar and maintenance ecosystems are well established. For drivers who rely on daily earnings, predictability often outweighs long-term savings.
However, this growing dependence on CNG raises important concerns. Although cleaner than diesel and petrol, CNG is still a fossil fuel and contributes to greenhouse gas emissions. Over-investing in CNG infrastructure risks locking the transport sector into another carbon-based pathway, potentially slowing the adoption of truly zero-emission solutions.
CNG has played a valuable transitional role in improving urban air quality, but it cannot be the final answer. To meet long-term climate and sustainability goals, India must accelerate investments in electric mobility, renewable power for charging and emerging alternatives such as bio-CNG and green hydrogen. Without a clear policy push toward these options, the transport transition may stall at “cleaner,” rather than becoming genuinely clean.
