• India could save around $1 billion annually in crude oil imports by replacing 10% of diesel use in the transport sector with LNG, according to a PNGRB case study.
•  The petroleum regulator highlighted strong potential for LNG adoption in heavy-haul transport, including intra-city and inter-city buses, mining machinery and haul trucks.
•  India can potentially switch 30-40% of diesel vehicles to LNG within the next 5-7 years, significantly reducing diesel consumption.
• During FY25, India consumed 91.4 million tonnes of diesel, of which 62 million tonnes was used in the transport sector.
• Converting 10% of diesel vehicles would displace 6.2 million tonnes of diesel, equivalent to 5.9 million tonnes of LNG.
• At current Brent-linked LNG prices of $60 per barrel, the displaced fuel would cost about $2.5 billion, delivering 22-30% savings in the crude import bill.
• This transition could result in ₹14,000 crore in annual savings for end consumers, with savings of about ₹528 per mBtu.
• PNGRB noted that fuel purchase decisions are largely driven by operating costs, and LNG offers a strong cost advantage for consumers.
• LNG consumption in transport currently stands at around 50,000 tonnes per annum, but could rise to 6 million tonnes per annum by 2030 with policy and infrastructure support.
• Rapid expansion of gas infrastructure across India has strengthened the case for LNG as an alternative transport fuel.
• Reducing dependence on liquid fuels would also lower India’s exposure to global oil price volatility, as the country remains heavily reliant on imported crude oil.