Share “Federal tax credit cuts cost of compressed...”

Federal tax credit cuts cost of compressed natural gas

Compressed natural gas is getting less expensive as a result of a tax credit passed last week as part of the “fiscal cliff” settlement.
BY JAY F. MARKS jmarks@opubco.com Published: January 8, 2013
Advertisement

Kolodziej said the tax credit should increase the price gap between CNG and gasoline or diesel, making it easier for drivers to switch. The payoff could come in as little as three years for some fleet vehicles.

“I think that is going to throw a lot of people off the fence, toward natural gas,” he said.

That has happened already at OnCue and Love's Travel Stops and Country Stores, two of Oklahoma's leading CNG retailers.

Love's spokeswoman Jenny Love Meyer said the lower prices also will forward the company's plan to add CNG at more of its locations.

“We are constantly monitoring demand for domestically-produced natural gas as a transportation fuel, and we see a need for it across the country, especially in the trucking industry,” she said.

Griffith said that OnCue Express expects to add CNG at as many as another dozen of its locations this year.