Singapore
Natural gas vehicle industry members have engaged with the Singapore Government, lobbying for government programs to make commercial vehicles and compressed natural gas (CNG) refuelling stations more viable. CNG vehicles currently qualify for registration concessions under the Green Vehicle Rebate (GVR) Scheme as well as fuel duty exemptions. Though both programs were extended by two years in this week’s budget, industry members say more is needed to ensure Singapore reaps the full benefits of natural gas vehicles. Lobbying work is being conducted under the banner of a CNG Committee formed in August last year within the Sustainable Energy Association of Singapore (SEAS).
The GVR scheme was due to expire at the end of this year but has now been extended until the end of 2011. Fuel tax exemptions for CNG vehicles have also been extended to the end of 2011, after which duty will be phased in at $0.20 per kg.
The budget, released by Finance Minister, Mr Tharman Shanmugaratnam, includes an annexe stating, “CNG duty of $0.20 per kg remains significantly below the $0.41 per litre we currently levy on petrol. The Government will study the appropriate long-term CNG duty rate, which should be benchmarked against the prevailing petrol duty rate, taking into account the relative impact that these two fuels have on the environment.”
Registration concessions under the Green Vehicle Rebate Scheme currently include:
(a) For hybrid, electric and CNG passenger vehicles: 40% of the Open Market Value (OMV) of the vehicle at registration.
(b) For hybrid, electric and CNG buses and commercial vehicles: 5% of OMV at registration.
The SEAS CNG Committee says that the government has still not given a firm direction or stimulus for CNG, with no incentives for commercial vehicles to switch from Euro II diesel to CNG, and CNG station infrastructure incentives completely left out. The rationale behind the decision to remove CNG from the GVR scheme and introduce CNG fuel duties from 2012, “as they [CNG vehicles] are not significantly cleaner than petrol cars except for a lower CO2 emissionâ€, is also to be challenged.
The island nation currently has 3 existing CNG fueling stations, with another 2 currently under development, fueling 2,444 private cars, 978 taxis, 9 commercial goods vehicles and 12 buses.
Backed by a founding membership of 18 members, the SEAS CNG Committee is headed up by major players, with Chairman, Mr Alexander C. Melchers, representing conversion and refuelling infrastructure provider C. Melchers GmbH & Co., and Vice Chairman, Mr William Aw, representing taxi and refuelling station operator, Smart Energy Pte Ltd. The Committee has strong support within Parliament though, with SEAS Chairman, Mr Edwin Khew also serving as a Member of Parliament. The Government’s National Environment Agency (NEA) is also reportedly supportive of the use of CNG. More vocal action is expected from SEAS in the coming weeks.
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