Which fuel vehicle should you buy? Petrol, Diesel or CNG?

 

There have been times when many people have asked us that which fuel vehicle they should buy. With changing fuel prices that decision also keeps changing. The below example will assist you to choose the best fuel type for you. However, the fuel prices keeps changing, so we are sharing a generic formula to calculate best fuel type for you at any point of time.

Generic Formula:

1)   Calculate the Running cost of each fuel type

       Cost of Fuel per litre/kg : A

       Mileage of Vehicle per litre/kg : B

       Running Cost per Km ( P ) : A / B

 

2)    Calculate the Kms to be driven for break Even point

       Assume the Ex-Showroom cost of vehicles of 2 fuel type is X & Y

       Assume the running cost of vehicles of 2 fuel type is P & Q

       Kms Break Even can be calculated as follows: (Y-X)/(P-Q)

Current Scenario:

Key Take Away:

• Petrol is a clear winner for personal use is you drive less than 15000 Kms annually ( i.e. 1250 Kms a month)
•  CNG can be opted if your running is more than 15000 Kms annually and all the below points suits your requirements
• You don’t use Boot space often
• CNG is easily available in pumps near your place of daily commute
• Price difference between Diesel and CNG in your city is minimum 10 rupees
• Diesel can be opted over petrol only if your running is more than 35000 kms annually and CNG doesn’t suit you. Still you will take 2 years to recover the cost and break even.