India can save $1 bn in crude imports by replacing 10% diesel with LNG in Freight News 05/01/2026 India could save $1 billion in crude oil imports annually if the country switches 10 per cent of its diesel usage in the transport sector to liquefied natural gas (LNG), according to a case study done by Petroleum and Natural Gas Regulatory Board (PNGRB). Drawing a strong case for boosting LNG usage in heavy-haul transport, the regulator said India holds the scope to switch 30-40 per cent of diesel vehicles to LNG in the next five-seven years by replacing intra-city or inter-city buses, heavy-haul mining machinery, and haul trucks. India consumed 91.4 million tonnes (mt) of diesel during 2024-25 (FY25), out of which 62 mt was consumed in the transport sector. “If we consider a case of 10 per cent of diesel-fuelled vehicles being converted to LNG, 6.2 mt diesel, which is equivalent to 5.9 mt of LNG, would be displaced by the latter, which at current prices of Brent, at a rate of $60 per barrel-linked LNG contracts, would cost close to $2.5 billion. So, considering savings of 22-30 per cent, the savings in crude import bill would be to the tune of $1 billion per annum,” PNGRB said in the case study. Switching 10 per cent of vehicles from diesel to LNG would yield savings of about ₹528 per million British thermal unit (mBtu), which translates to ₹14,000 crore annual savings for end consumers, it added. “The end consumers experience the fuel market in a manner where purchase decisions are driven primarily by out-of-pocket operating costs and the expenses they can bear. If a switch to LNG offers a substantial cost advantage, it clearly establishes a strong business case,” the regulator said. As of now, LNG consumption in the sector is close to 50,000 tonnes per annum (tpa). However, with the required thrust, it has a potential to achieve a sizable market of around 6 million tonnes per annum (mtpa) by 2030, said PNGRB. Rapid expansion of gas infrastructure in India over the past few years has strengthened the case for LNG as a transport fuel. Reducing liquid-fuel demand would also lower exposure to global oil price shocks as India remains heavily dependent on imported crude oil. Source: Business Standard 2026-01-05 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share