Natural gas vehicles (NGV) like the Ford F-150 and Honda Civic Natural Gas have been attractive to many consumers and businesses – plus there are GM and Chrysler NGV pickups and there are a lot of conversions being done for commercial vehicles that have gained buyer interest in the past couple of years.
A federal tax incentive expired in Washington on December 31 that’s increasing gas pump prices – up to 50 cents for each gasoline gallon equivalent (GGE) of natural gas sold at a lot of fueling stations.
That’s been a 30% cost increase at some fuel stations, and it’s a cause for concern for compressed natural gas (CNG) vehicle owners and for those providing the vehicles and infrastructure.
There are a few reasons as to why it won’t be going away:
A lot of people enjoy that it’s a domestically produced fuel and not coming from an overseas OPEC country.
Even if the tax credit takes its strong price savings off a bit, it’s still a good deal. Prices are varying in the US – around $1.65 to $2.50 per gallon equivalent around the country – lately averaging around $2.10 per gallon compared to about $3.28 for gasoline and $3.85 for diesel.
It might come back in Washington, and legislators are looking at the options.
For those interested in NGVs, the fundamentals are still in place – cheaper fuel price, reduced emissions, and domestic fuel. Plus, there are more vehicle offerings coming to market.
The fueling infrastructure is getting better each year – which addresses a commonly expressed concern over keeping NGVs fueled and on the roads.
