Propickup Digital Magazine
Issue link: https://read.dmtmag.com/i/93727
MONEYMATTERS PRESSURE FLEETS UNDER Is now the time to lock-in on the bi-fuel bandwagon and switch those gas/ diesel pickups to CNG? The true cost will make that an easy choice … By Robin Walton, CPA W hen our ProPickup editors came back from Indianapolis they were talking about the Com- pressed Natural Gas (CNG) vehicles they had seen at the National Truck Equipment Association Show (NTEA). They had plenty to say about gaseous engine prep, octane ratings and CNG filling stations. But I wanted to know about the costs involved with purchasing, operating and maintaining these vehicles. CNG technology takes advantage of the same natural gas resources that many of our homes and businesses use for heating and power. The gas must be compressed to a pressure of 2,900 to 3,600 psi for vehicle use so the volume carried on board gives the vehicles practical range. The compressed version of the natural gas is readily available in some regions and practically non-exis- tent in other areas. 12 PROPICKUP June 2012 Units of CNG can be referred to as gasoline gallon equivalent (GGE), which approximates the amount of CNG it takes to produce the same BTUs as a gallon of regular gasoline. One of the incentives for using CNG is that the price per GGE is on average $1.25 less than the price of a gallon of gasoline. In oil and gas producing areas, the price differ- ence can be much greater. If CNG is less expensive than gasoline, why isn't it used more than gasoline? The answers to this question will help you make the decision about CNG for your company. I've already mentioned fuel availability. Obviously CNG powered vehicles are more practical in areas where you can actually get the fuel. If CNG grows in popularity, the market will likely make sure that the fuel is available in more areas. INITIAL INVESTMENT The biggest factor slowing the use of CNG is the cost of CNG-capable vehicles. Ford, GM and Ram all make dual-fuel pickups capable of operating on CNG or gasoline. But the option comes with a hefty price tag ranging from $10,000 to $15,000. There are several facets to consider when looking at the costs associated with CNG capable vehicles. Theoretically, the difference in fuel cost will compensate for the additional vehicle expense over time, which will happen more quickly in some markets than others. The U.S. Department of Energy's Clean Cities Alternative Fuel Price Report (Janu- ary 2012) shows the nationwide average gasoline price at $3.37 per gallon versus the price of CNG at $2.13 per GGE. This translates into about $.06 per mile in fuel savings for a pickup that gets 20mpg.