Czech Republic, Prague

0% excise and road tax rates for CNG
Monthly gas pricing reviews to ensure price advantage
1,153 natural gas vehicles but growing
17 CNG fueling stations operational - 8 more expected by year end
Prague conference scheduled for January 2009

With road transport currently growing in the Czech Republic, by 12 per cent every year, promoting natural gas vehicle use is one of the major measures intended to reduce pollutant emissions from transport. In May 2005 the Czech Government approved the Programme of Support for Alternative Fuels in Transport – Natural Gas. The programme set forth some solutions that have since helped to create a stable and attractive environment for the development of natural gas use in transport.

Support provided by the government and gas companies

In their agreement, the government and gas companies have agreed to create the preconditions for the promotion of natural gas in transport in the Czech Republic. This mainly involves rolling out a network of CNG refuelling stations, introducing a zero excise duty rate on CNG, developing technical legislation in accordance with European standards and practice, and developing marketing support in co-operation with all the stakeholders.

There are ongoing efforts to reduce the health and environmental risks inherent in air pollution caused by the enormous growth in road transport. The government and gas companies subsidise the procurement of new CNG buses for urban and suburban transport services. We expect an increase in the number of CNG vehicles mainly in urban agglomerations, and also a gradual replacement of governmental authorities’ and government-controlled organisations’ vehicle fleets by ‘clean vehicles’, including CNG vehicles, and a broader use of CNG vehicles by businesses and in the municipal sphere (above all, refuse collection vehicles).

The government also provides support by introducing a zero excise duty on CNG until 2011; from that year the rate will be gradually increased until 2020, to reach the minimum rate applicable in the EU; further, CNG vehicles are exempt from the road tax.

As crude oil price currently rise at an unpleasant rate, natural gas prices are also slightly increasing. In the Czech Republic, CNG prices are set on a monthly basis in relation to oil product prices. This approach helps to achieve a continuous advantage for CNG in terms of pricing. CNG prices average at EUR 0.652/cu m, which is approximately one half of petrol and diesel prices (petrol averages at EUR 1.304/l and diesel at EUR 1.386/l). Operating savings are stable, between EUR 0.061 and 0.122 per kilometre.including the benefit of road tax reduction.

In June 2008, 1,153 CNG vehicles were registered in the Czech Republic; of these, about 900 are passenger cars, 215 are CNG buses and 11 are municipal vehicles. Forklifts and ice resurfacers are also run on natural gas. Some 5.8 mcm of CNG was sold in 2007, i.e., up by 61% in comparison with 2006 when the consumption was 3.58 mcm.

The Czech automobile market follows developments in neighbouring European countries, and the range of CNG vehicles on offer is gradually broadening. Czech importers of OEM vehicles of the world’s leading makes are offering new CNG models, which are much more environmentally friendly (fully meet the Euro 4 standards, while many of them meet Euro 5 and EEV standards) and feature appreciably lower operating costs. 

On the Czech market the range of CNG vehicles includes almost all world manufacturers (Citroen, Fiat, General Motors, Mercedes-Benz, VW, Renault, and Iveco). Domestic manufacturers include primarily those of CNG buses (Tedom and SOR). The Czech passenger car manufacturer, Škoda Auto, has only produced prototypes of its CNG models and has not yet shown any interest in the series production of CNG cars. As the sales of NGVs slowly increase, so is the number of CNG servicing shops that employ trained specialists.

At present 17 public refuelling stations are in operation in the Czech Republic, and another eight are expected to be opened in 2008. In addition to gas companies, also other companies are involved in their roll out. By 2020 the total number of stations is expected to be 350 to 400.

NGV legislation

To simplify vehicle refuelling and make it more attractive, and to facilitate non-stop access to dispensers, the Czech Gas Association has initiated the introduction of self-service CNG refuelling; for this purpose an autonomous decentralised customer payment system has been developed, the CNG CardCentrum. The system uses a single universal customer card and the cardholder is billed for the CNG taken on a monthly basis. In 2008 completely new technical regulations are being prepared for CNG garaging, repairing, servicing and refuelling (VRA). The Czech Gas Association’s co-operation with their foreign colleagues in the ENGVA (now NGVA Europe) is highly valuable in the development of these regulations.

Popularising the CNG programme

National and regional seminars organised by the Czech Gas Association and called Going on Natural Gas have by now become well known and highly appreciated events intended for businesses operating in road transport – passenger transport and road haulage, state administration and regional self-governments, mayors, and companies and individuals who operate large and small vehicle fleets and their own vehicles.

A major event organised by the Czech Gas Association is the Prospects for the Development and Use of CNG in Transport international conference. The participation in the conference of prominent Czech and international experts and distinguished guests vindicates the urgency of CNG in transport and the importance of addressing this issue.

The favourable responses elicited by this international event have convinced us of the need for holding regular meetings and exchanging experiences at this level. The Czech Gas Association is therefore preparing the next edition of this Prague conference for 28 and 29 January 2009. (Details are available from the author Esta dirección electrónica esta protegida contra spambots. Es necesario activar Javascript para visualizarla ).

We want the public’s interest in this type of clean, cheap and safe motor fuel to grow in the years to come. We want unit pollutant emissions and, in general, air pollution, including the harmful particulates, to decrease. Due to the rising intensity of road traffic these emission levels continue to be alarming; air quality in cities and devastation of nature along the heavily used roads are convincing us of this, challenging us to focus even more on our programme of CNG use in transport in the Czech Republic.

Contracts for natural gas supplies have been executed for a term ending as late as 2035, and the routes for natural gas imports into the Czech Republic have been diversified. The Czech Republic has a stable and reliable gas system, including underground gas storage facilities with sufficient stores for contingencies such as breakdowns or temporary interruption in supplies. Natural gas as a fuel has great potential, and very advantageous long-term conditions for its broader use are currently in place. This situation is not specific for the Czech Republic only – it is a general trend in the EU.