Lucknow, May 2025 — The cost of Compressed Natural Gas (CNG) in Lucknow has been on a steady upward trajectory over the past several months, directly influencing the daily lives of thousands of residents and the city’s transport sector. As the preferred fuel for a large share of local vehicles—especially auto-rickshaws, tempos, and some taxis—the recent fluctuations in CNG prices have drawn significant attention among commuters and transport operators alike. This article provides a comprehensive look at the evolving CNG price trends in Lucknow, recent policy developments, and the wider implications for local transport and the average citizen.
Current Price and Recent Trends
As of May 2025, the prevailing CNG price in Lucknow stands at approximately ₹96.75 per kilogram, marking an increase of nearly ₹3 from the ₹93.96 rate recorded in early February. This hike is consistent with adjustments seen across other cities in Uttar Pradesh, including Agra, Ayodhya, and Sultanpur, reflecting broader market dynamics impacting fuel prices.
The price increase has been attributed mainly to rising natural gas costs, transportation expenses, and periodic revisions by distributors such as Green Gas Limited (GGL), the primary CNG supplier in Lucknow. Since the beginning of this year, Lucknow has witnessed at least two price hikes — one in February and another in April — both aimed at aligning retail prices with the fluctuating procurement costs from suppliers.
These adjustments come amid a global environment of increasing fuel prices, influenced by geopolitical factors and supply-demand imbalances. While CNG remains comparatively cheaper than petrol or diesel, the steady price rise has nonetheless begun to strain budgets of transport operators and commuters dependent on this fuel.
Policy Updates and Government Interventions
The Uttar Pradesh government and local authorities in Lucknow have closely monitored the impact of CNG price changes on the urban transport network. Recognizing CNG’s critical role in promoting cleaner fuel usage and reducing vehicular pollution, several policy measures have been implemented or proposed:
- Price Monitoring and Regulation: The state government, through agencies like the Uttar Pradesh State Gas Distribution Company, keeps a watchful eye on pricing trends to prevent sudden and excessive spikes. While distributors are allowed to revise prices based on input costs, efforts are underway to smoothen fluctuations and avoid burdening consumers with abrupt increases.
- Promotion of Alternative Fuels: In line with national goals to promote cleaner energy, Lucknow Municipal Corporation (LMC) is encouraging the gradual adoption of electric vehicles (EVs) and CNG-powered municipal transport. Recently, the LMC announced plans to phase out luxury petrol/diesel vehicles from its fleet and replace them with electric and CNG models to reduce pollution and fuel expenditure.
- Subsidies and Support for Drivers: There are ongoing discussions around offering targeted subsidies or financial aid to auto-rickshaw and tempo drivers, many of whom operate on thin profit margins. While direct fuel subsidies are limited, schemes aimed at facilitating easier loans for vehicle upgrades to more fuel-efficient or electric models are being explored.
- Expansion of CNG Infrastructure: To ensure steady supply and meet growing demand, investments are being made to expand CNG refilling stations within the city and its outskirts. Improved infrastructure aims to reduce waiting times for refueling, making CNG-powered vehicles more convenient for daily use.
Impact on Local Transport Sector
Lucknow’s local transport ecosystem is heavily reliant on CNG, especially for auto-rickshaws and tempos, which form the backbone of last-mile connectivity. According to estimates, nearly 90,000 CNG vehicles operate within the city limits, with an additional 10,000 vehicles entering daily from neighboring districts for work and commerce.
The recent rise in CNG prices has directly impacted these transport operators in several ways:
- Increased Operational Costs: The surge in fuel prices has increased the cost of daily operations for auto and tempo drivers. Since fuel accounts for a significant portion of their expenses, many have struggled to maintain profitability without increasing fares.
- Fare Hikes Approved: Responding to the rising costs, the State Transport Authority and Lucknow Transport Department have approved fare hikes for auto-rickshaws and tempos. As of April 2025, auto fares increased by approximately ₹4.19 per kilometer. This fare adjustment aims to help drivers manage the inflationary pressure but has also led to public concerns over increased travel expenses.
- Shift in Commuter Behavior: Some daily commuters have started exploring alternative transport options due to higher fares. These include ride-sharing apps, private vehicles, or even non-motorized modes such as bicycles. However, for many low-income residents dependent on affordable public transport, options remain limited.
- Pressure on Transport Operators: Small fleet owners and individual drivers face a double-edged challenge — balancing higher fuel costs and fare hikes while competing with cheaper or subsidized transport modes, such as city buses. This has led some operators to reduce daily operating hours or seek secondary jobs to supplement income.
Citizens’ Perspective
For the average Lucknow resident, especially daily wage earners, students, and low-income workers, the increasing CNG prices and subsequent rise in auto fares have tangible effects:
- Rising Commuting Costs: With the majority of intra-city travel depending on CNG autos and tempos, fare hikes translate directly into increased daily expenses for many households. For instance, a daily commuter covering 10 kilometers each way might spend ₹40–50 more weekly just on transport, which accumulates significantly over a month.
- Budgetary Adjustments: Many residents report having to cut back on non-essential spending or opt for longer walking routes to reduce transport costs. Some families have shifted children to schools nearer their homes to avoid travel expenses.
- Concerns over Accessibility: In peripheral areas of Lucknow, where public bus services are limited, reliance on CNG autos remains high. Rising fares risk reducing mobility for residents in these localities, impacting access to jobs, education, and healthcare.
- Environmental Awareness: While the economic burden is felt keenly, there is also growing awareness among citizens about the environmental benefits of using CNG over petrol or diesel. Many welcome government initiatives promoting cleaner fuels and sustainable transport but hope for more effective measures to keep costs manageable.
What Lies Ahead?
The future of CNG pricing in Lucknow hinges on multiple factors:
- Global Energy Markets: International natural gas prices and supply chain stability will continue influencing local CNG rates. Any major disruptions or easing in global fuel costs could trigger corresponding local price adjustments.
- Government Policies: Continued regulatory oversight, subsidy programs, and infrastructural improvements could help moderate prices and improve availability. Additionally, policies promoting EV adoption and renewable energy integration will shape the transport fuel mix.
- Technological Advancements: Advances in vehicle efficiency, better CNG technology, and increased electric vehicle penetration could gradually reduce dependence on CNG and mitigate fuel price impacts on commuters.
- Public Sentiment and Behavior: Ultimately, consumer responses to fare hikes and fuel price changes will shape market dynamics. If fare increases dampen ridership significantly, transport operators might be forced to reconsider pricing or vehicle usage patterns.
Conclusion
The increase in CNG prices in Lucknow is a microcosm of wider energy and economic trends impacting urban India. While CNG remains a cleaner and more economical fuel choice compared to petrol or diesel, rising costs pose challenges for transport operators and everyday citizens alike.
Local government efforts to balance environmental goals with economic realities are crucial to ensuring sustainable urban mobility in Lucknow. Continued investments in alternative energy, infrastructure expansion, and supportive policies for drivers and commuters will be key to managing the evolving landscape of fuel prices.
