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Compressed natural gas costs jump

Compressed natural gas prices jumped Thursday as the 50 cent per gallon federal tax credit expired.
by Adam Wilmoth Modified: January 3, 2014 at 8:00 pm •  Published: January 2, 2014
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Compressed natural gas costs jumped this week after the new year rang in with the expiration of a 50-cent-per-gallon federal tax credit.

Fuel costs as low as 88 cents a gallon are likely gone, but industry leaders say the momentum is not.

I bought my 2009 CNG Honda Civic in April, well after Congress included the tax credit in its fiscal cliff negotiations in late 2012.

I knew the credit was set to expire at year's end, but I also knew the CNG car would make sense financially for me even without the tax credit.

Oklahoma Energy and Environment Secretary Michael Teague said that is likely to be the case for most people who have made the switch to CNG.

“I think you're still going to have enough difference in what you're paying for gasoline and what you're paying for CNG to still make that very affordable and enticing,” he said.

With the increase, most CNG stations in the Oklahoma City area are set to charge between $1.40 and $2 per gasoline gallon equivalent, well less than Thursday's Oklahoma City average price of $3.05 per gallon for gasoline.

Except for the tax credit change, compressed natural gas prices also tend to be much more stable than gasoline.

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by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
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