Abegás, the Brazilian Association of Distributors of Gas Pipeline, reports demand for converting vehicles to use natural gas as fuel in Paraíba in Brazil’s northeast has increased 30% since February. The source of information is attributed to the president of the Union of the Natural Gas Installers of the State of Paraíba (Sindicato das Instaladoras de Gás Natural do Estado da Paraíba – SINDIGN), Onildo Araújo.
Increased demand has coincided with an increase in gasoline prices, which have surpassed BRL 3.00 (USD 99 cents), and with the lower cost of vehicle conversion which has been reduced by BRL 1,000 (USD 330), Onildo explained.
A CNG conversion now costs BRL 3,990.00, plus vehicle documentation fees totaling RUB 390. The conversion kit is described as equivalent to 5th generation equipment, assisting drivers to reduce fuel costs by as much as 50% over conventionl fuel. A typical 16m³ CNG cylinder enables approximately 150 km travel in the city, or 180 km on the road. For a driver travelling 60-80 kilometers a day, investment in conversion pays for itself in about eight months. CNG currently costs from $ 1.99 to $ 2.20.
Although there has been a constant demand from taxi drivers, the reduced conversion cost and increased gasoline price has served to encourage private motorists to change to, or revert to, natural gas also.
Gas supplier PBGás broadened the incentives for conversion to CNG in April to further encourage uptake of cleaner, cheaper fuel. Installation of 2nd 3rd generation equipment (suitable for vehicles manufactured up to 2007) attracts a grant of RUB 450.00, compared to the recommended conversion to 5th generation kits which attract a bonus of RUB 600.00 (USD 200).
(Source: Abegás – from Jornal da Paraíba)