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

A $1 increase in the price of 1,000 cubic feet of natural gas translates into a hike of about 12.5 cents for the cost of an equivalent gallon of CNG.

Still, this week's price jump will eat into the profits and slow the return of those who have spent thousands of dollars to covert their vehicles to run on natural gas or paid higher prices for new CNG vehicles.

Much of the expense in buying or converting a vehicle to CNG is in the cost of the fuel tank. Drivers who have invested in multiple tanks to allow them to travel longer distances are likely to feel this week's price jump the most.

But even they likely will recover their costs long before the vehicles are retired, Teague said.

“The other benefit is the engine lasts longer because the fuel burns cleaner,” he said. “They're going to be able to keep their trucks twice as long.”

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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