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Expiring tax credit to drive CNG prices higher

A federal tax credit that sliced 50 cents a gallon off the price of compressed natural gas is set to expire next week.
BY JAY F. MARKS Published: December 28, 2013

Natural gas vehicle drivers will likely see their gas prices go up at least 50 cents a gallon after a federal tax credit runs out at the end of the year.

“At Love's (Travel Stops), we strive to maintain the lowest retail prices for our customers,” spokeswoman Kealey Dorian said.

“The CNG tax credit expiration will cause our costs to rise, but we are working to keep the impact to our natural gas customers minimal.”

The CNG credit was part of a package of tax credit extensions that passed with last year's “fiscal cliff” settlement.

Many retailers immediately dropped their prices on the gasoline alternative once the tax credit went into effect.

“I wish it'd stay on,” said OnCue Express CEO Jim Griffith, who added he has not heard anything about a potential extension of the tax credit. OnCue opened its first CNG fueling station in Oklahoma City in 2009.

He said prices at OnCue will go up at least 50 cents per gallon because of the expiring tax credit and rising natural gas prices.

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