How India’s Tier-2 Cities Are Driving the Next CNG Boom (2025–2030 Outlook)

The Big Shift: CNG’s Second Wave Is Regional

For nearly a decade, India’s CNG growth story belonged to metros — Delhi, Mumbai, Pune, and Ahmedabad. But in 2025, a quiet revolution is happening outside the big cities. From Lucknow to Surat, Indore to Nagpur, Tier-2 and Tier-3 cities are now leading the next phase of India’s clean mobility boom.

This is not just about fuel — it’s about accessibility, affordability, and regional empowerment.

⛽ The Data Behind the Surge

As of May 2025, India had over 8,340 CNG stations — up from 6,907 in May 2024, an 18% year-on-year growth.

But here’s what’s remarkable: Nearly 55% of new CNG stations commissioned in FY 2024–25 were in Tier-2 and Tier-3 cities, not metros. This includes fast-expanding corridors across:

Central India: Indore, Bhopal, Nagpur, Raipur

West India: Surat, Nashik, Rajkot, Vadodara

North India: Lucknow, Kanpur, Agra, Ludhiana

South India: Mysuru, Mangalore, Coimbatore, Vijayawada

These regions are becoming India’s CNG backbone — where demand and infrastructure are finally meeting.

🚗 Why Tier-2 Cities Are Adopting Faster

1. Fuel Price Sensitivity

Petrol prices in many non-metro cities hover between ₹107–₹110 per litre. With CNG averaging ₹82/kg, the running cost per km is almost 50% cheaper, a decisive factor for small-business owners, cab drivers, and intercity commuters. (ppac.gov.in)

2. Growing Middle-Class Mobility

As car ownership surges outside metros, Tier-2 households are choosing practical, fuel-efficient models — and CNG fits that perfectly. Brands like Maruti Suzuki, Tata Motors, and Hyundai are launching CNG variants across compact SUVs and sedans to target these expanding markets.

3. Expanding Gas Distribution Networks

City Gas Distribution (CGD) projects are transforming access. PNGRB data shows that by early 2025, 307 Geographical Areas (GAs) had been authorized—covering 98% of India’s population. Much of this expansion is focused on Tier-2 clusters, where fresh infrastructure and demand are rising together.

🌱 Environmental Push Meets Economic Logic

Tier-2 cities face severe air-quality issues but have limited EV adoption due to poor charging infrastructure. CNG bridges that gap. It offers a 25% reduction in CO₂, 70% lower NOx, and nearly zero particulate emissions versus petrol and diesel — without requiring high-tech charging networks.

For urban planners, it’s the most scalable clean-fuel solution available today.

📈 Real Examples of the Regional CNG Boom

Surat, Gujarat: Over 120 CNG stations now active; city aims for 100% public transport on CNG by 2027.

Lucknow, Uttar Pradesh: Rapid growth of private CNG vehicles (up 32% in FY 2024–25) per transport department data.

Indore, Madhya Pradesh: CGD network has tripled station count since 2020, supporting both personal and commercial CNG fleets.

Nagpur, Maharashtra: 20 new CNG stations commissioned since 2023; city also piloting bio-CNG integration under local waste projects.

These cities are quietly proving that clean mobility doesn’t have to start in metros — it can start everywhere.

🔮 What’s Next (2025–2030 Outlook)

By 2030, PNGRB forecasts India will cross 14,000 operational CNG stations, with Tier-2 cities accounting for over 60% of them. Simultaneously, Bio-CNG blending will make these regions even greener, as local waste-to-fuel plants plug into CGD pipelines.

In short, the future of CNG in India is decentralised — driven by smart mid-sized cities that blend clean fuel, affordability, and grassroots energy innovation.

The next big wave in India’s clean mobility story won’t come from Delhi or Mumbai. It will come from Surat’s ring roads, Lucknow’s highways, and Indore’s growing suburbs — where affordability meets ambition.

CNG’s power is no longer just in cost savings — it’s in accessibility. And Tier-2 India is turning that accessibility into action.

The green revolution on wheels has left the metros — and it’s accelerating where India truly lives.

Disclaimer: All statistics and forecasts are based on verified public data from PNGRB, PPAC, and industry sources as of 2025. Future projections may vary with policy changes, infrastructure rollout, and market dynamics.