GAIL Gas Limited and Uber, have entered into a strategic partnership to promote the usage of CNG (Compressed Natural Gas) across various cities in India. In the first leg, the initiative is being rolled out in Bengaluru and will subsequently be extended pan-India including several other cities like Hyderabad and Kolkata. Uber had recently announced it has saved $4.5 million in fuel import costs in India.
A Memorandum of Understanding (MoU) was signed today between the two companies during the inauguration of a GAIL Gas CNG Station at Hardware Technology Park, near Bengaluru airport in the presence of Shri B.C. Tripathi, Chairman & Managing Director, GAIL (India) Limited; Shri A.K. Jana, Chief Executive Officer, GAIL Gas Limited and Shri Madhu Kannan, Chief Business Officer –Emerging Markets, Uber.
As part of this partnership, termed as “Hasiru Bengaluru” or “Green Bengaluru”, GAIL Gas CNG Stations and Uber will promote the adoption of cleaner fuels like CNG in Ubers in Bengaluru. As part of the agreement, GAIL Gas will provide free CNG to the first 500 cars joining under the program, capped at a maximum of INR 10,000 per car. GAIL Gas will be extending coupons to each of the participating Uber driver partners for INR 2500 per month for the first four months.
Uber will provide a joining award of INR 10,000 to the first 500 CNG vehicles driving with the platform. Uber will in turn, create awareness among its driver partner community on the benefits of CNG through several channels. In order to promote cleaner fuel vehicles, GAIL Gas & Uber will also be leading conversations with OEMs, auto dealers, and retrofitters. The GAIL Gas CNG station inaugurated today at KIADB Hardware Technology Park, near Bengaluru Airport alone has a capacity to fuel approximately 1000 vehicles a day. The station has two compressors with 1200 SCMH Capacity each and four dispensers for refilling cars and autos. These dispensers have the capacity to refuel 8 vehicles simultaneously at any time.To optimize uptake of CNG and improve accessibility to the fuel for Bengalureans, GAIL Gas is also making CNG available through Retail Outlets of other Oil Marketing Companies. There are six CNG stations operational at Laggere (Prem Nagar), APC Circle (Jigani), Peenya Industrial Area, Sungadkatte, Bommasandra Industrial Area in the city. Upcoming CNG Stations include Agara, KR Puram, Goravigere, New Airport Road, Tata Nagar, Sarjapur Road. (June-Oct, 2018) Overall, to cater to the demand and facilitate a strong ecosystem, 20 new CNG stations are expected to be operational by March 2019.
With diesel and petrol prices rising, CNG presents an affordable and environment-friendly alternative. The cost of CNG in Bengaluru is INR 51.27 per kg. For vehicle owners, this can result in savings of around 60 % over petrol, 50% over diesel alternatives and approximately 45% over auto LPG. For Uber drivers using CNG, this can mean monthly savings upto INR 15,000.
CNG | Diesel | Monthly Saving | Rationale behind estimates | |
Fuel Cost | INR 2.1 per Km | INR 4.8 per Km | Approx INR 10000
|
INR 2.7 per km difference (4.8-2.1)
Estimate – 145 km travel per day — driving approximately for 10 trips Assuming Avg speed in BLR at 20kmph so approx 7 hrs of driving time |
Maintenance | INR 2000 | INR 4000 | Approx INR 2000
|
Comparison of average costs for popular diesel cars versus a WagonR CNG car for demonstration purposes |
EMI | INR 13500 | INR 16000 | Approx INR 2500
|
Comparison of average EMIs for popular diesel cars versus a WagonR CNG car for demonstration purposes |
By promoting the adoption of CNG, Uber and GAIL Gas are committed to reducing vehicular pollution and congestion not only in Bengaluru but also across the country and incentivizing ridesharing thereby benefiting the drivers, riders, and the country in general.
Follow us on Twitter for more news and updates.
hmm so can we expect more affordable UBER ride?
#TeamNikhilchawla #TeamUnbiasedblog