Key facts
- CNG vehicle registrations and industrial gas consumption in Morbi are projected for strong growth through mid-2026.
- CNG vehicles remain cheaper than EVs and petrol, with favorable payback periods.
- Gujarat Gas anticipates increased LNG blending due to rising demand in Morbi.
- Morbi's PNG(I) volume surged 15% month-over-month in June 2026, with consumption expected to hit an all-time high.
- Live EventsTile prices have increased by Rs10/sq ft due to higher energy and freight costs.
CNG vehicle registrations and industrial gas consumption in Morbi are projected to experience robust growth through mid-2026, according to a research report by Dolat Capital. Despite multiple price increases for CNG, the total cost of ownership for CNG vehicles remains significantly lower than electric vehicles (EVs) in major Indian cities like Delhi and Mumbai. The payback period compared to petrol vehicles has only slightly increased, maintaining favorable economics for CNG adoption.
For Gujarat Gas, the company is expected to increase its spot Liquefied Natural Gas (LNG) blending as demand from Morbi surges. The Morbi region's industrial PNG (Piped Natural Gas) demand has seen a substantial increase, with 800 out of 850 ceramic units resuming operations. This surge is expected to push overall Gujarat Gas volume to an all-time high.
CNG adoption remained strong in May 2026 across three-wheeler and four-wheeler categories, supported by healthy auto sales. IGL and Gujarat Gas recorded significant year-over-year increases in monthly registrations, while Mahanagar Gas Limited, despite a slight year-over-year dip, maintained high adoption rates. Dolat Capital forecasts continued CNG volume growth for these companies over the next 12 months.
In Morbi, PNG(I) volume has climbed significantly, driven by the resumption of ceramic units. This is expected to lead to an all-time high in consumption and a substantial year-over-year growth in PNG(I) volume. Despite pricing parity with propane, industries in Morbi are prioritizing PNG(I) due to its trusted and assured supply. Loyalty benefits further enhance the cost advantage for some consumers.
Live EventsTile prices have also risen, influenced by increased costs for gas, coal, freight, and diesel. Domestic demand is at peak levels, with substantial order books and waiting periods for bulk buyers, indicating strong market activity.