CNG car sales race ahead as petrol prices soar

[Ahyoo2002]

Business Times - 16 Jul 2008

 

CNG car sales race ahead as petrol prices soar

Over 800 units sold in past 6 months compared to just 34 for whole of 2007

 

By SAMUEL EE

 

SALES of CNG cars are continuing to power ahead this year, with the number of such vehicles in the first six months soaring to 804 from a mere 34 for the whole of last year.

 

According to the Land Transport Authority, there were 1,564 bi-fuel cars on Singapore roads as at end-June. June was also the hottest month in the first half of this year for such cars, with an all-time high of 124 units registered.

 

Bi-fuel cars can run on both petrol and CNG (compressed natural gas). Mercedes-Benz is the only car maker that offers a CNG model - the E200 NGT (Natural Gas Technology) - direct from the factory. The rest of the petrol-engined cars here have been retrofitted with gas tanks and injectors so that they can also operate on CNG.

 

As petrol prices soar, more and more buyers of new cars are converting their vehicles to run on CNG, which is less expensive.

 

Apart from lower running costs, such retrofitted cars also attract a green vehicle rebate, currently set at 40 per cent of OMV (open market value). This means its list price will also be lower, thus outweighing the CNG conversion cost, which can range from $3,400 to $4,500, depending on the size of the gas tank installed.

 

But the price of CNG is also rising fast because it is pegged to the price of high sulphur fuel oil (HFSO). Last week, it cost $1.59 per kg at Smart Energy, one of two CNG refuelling stations in Singapore. On Monday, the price rose to $1.73.

 

'The higher cost of CNG will definitely affect the demand for CNG cars because the price difference compared with petrol is reduced,' says Johnny Harjantho, managing director of Smart Energy.

 

But he says that the mileage gains from CNG versus petrol will continue to make it a popular alternative, 'especially for those who travel a lot'.

 

Mr Harjantho says that on average, a 2.0-litre car can travel about 250km on 18kg of CNG, for a cost per km number of 12.5 cents. For that same distance, the 2.0-litre car will need an average of 27.78 litres of petrol, or 23.4 cents per km using the cheapest fuel grade at $2.102 per litre.

 

One parallel importer also believes the popularity of CNG cars will remain strong.

 

'Current demand is overwhelming,' he says. 'For every 10 enquiries about new cars, six or seven are for CNG models.'

 

He adds that the waiting time for the installation of a CNG kit used to take two weeks two months ago. 'Now, the queue time is two months,' he notes. 'Look at it this way - one full tank of petrol for a 1.8-litre MPV costs $80 to $90. With CNG, it's about $40 or half the price. So, of course, you will go CNG.'

[Ahyoo2002]

After more CNG cars on the road, CNG price up

[Kelpie]

1. It only makes sense to buy a new car with CNG rebate if really don't mind about the weight, the loss of boot space and CNG sticker. Certainly better mileage meh? sure or not? From I've read from in those CNG website, it can be worse than petrol but then in those countries, their CNG is dirt cheap so not a concern to them at all.

 

2. IMHO, those that can afford to change car every 3 years, CNG is not an attractive option for now. If one wants a cheaper option to substain a drinker, by all means.

 

Regards,

[Genie47]

Bad fuel economy is from bad tuning. Then there are also worn parts from poor maintenance.

 

At SGCNG, we are seeing 4.6kg/100km (from Honda Fit) to 5.5kg/100km (from Grandis).

 

Bad tuning has another side effect. Lousy emissions.

 

In these economic and market conditions. Anybody who likes to change cars in every three years looks rather......stupid.

Edited July 16, 2008 by Genie47

[Genie47]

The high CNG prices now should be doing its nasty work. Control CNG bifuel car growth. If this is unchecked, all the CNG bifuel car owners will get raped.

 

Raped by long queues. We only have two publicly accessible filling stations.

 

The infrastructure barely can sustain the number of CNG bifuel cars now and that includes the taxis and minibuses.

 

Last Fri, the queues on Mandai at 9pm was like JB early last year. Their taxi driver also complain not enough stations then.

[Kianbeng]

I went to the Perling NGV in perling. Found it very fast. I think only got 4 pump nozzles but the cars are parked side by side. Once the pump finish on this car, the attendant will quickly switch over to the other car at the side with bonnet opened standby.

 

Think I only spent like 5 mins at the pump. Before I finish my conversation with 1 taxi driver, the attendant already switch off the nozzle, bring to another car and start pumping. I almost didn't see how much was the amount but luckily my wife saw. RM13.66. Gave him RM20 and he returned RM6.30. By right in msia, his rounding is wrong but I bochup .... few cents....can't even buy him kopi.

[Genie47]

That is how MY NGV stations work. Took me two visits to understand their system. Senai works this way as well but the rest of the stations are more orderly due to space constraints.

 

There is a drawback for visiting MY NGV stations. The fill technicians can be very rough with your fill valve. They slam it in hard. I just replaced my fill valve. It was leaking when I filled up on Sun. Costs me SGD88 inclusive of GST to replace it.

 

Read my reply to you in the other thread. Have your ignition system checked out and replace anything that needs replacing. Oh hell! Replace everything in the ignition system. Then have it tuned again, you will find increased power and better fuel economy.

[Kianbeng]

Are you sure it's because the attendants were rough?? I feel the refill valve has to be relatively tough. Otherwise....it's like refilling 30 times gently is same as 1 rough one. And basically it's like saying after refilling 30 times properly it'll leak?

 

Cannot be leh.....

[Ahyoo2002]

If you do a search at sgcarmart, the 2nd hand cars are flooded which cause almost no 2nd hand market. This make me consider getting a 2nd hand car now since the 1st owner bear most of the cost liao

[Ahyoo2002]

Haha, the queue for installation is 2 months

[Genie47]

Its that spring inside.

 

Mine more than 1yr old. Each week 2 times before the stations opened here. Then it is 3 times a week. Installed in Apr last year.

 

Will wear down. Hopefully, installers can recon these parts, certify them and offer them at a lower price. Such a waste to see the whole fill valve go.

[Genie47]

Crazy, right? Queue for 2 months then get car queue to get it filled with gas.

 

This growth must slow down or all of us bifuel car owners will suffer.

Edited July 16, 2008 by Genie47

[Koolaba]

After more CNG cars on the road, CNG price up

 

... & not forgetting the (very) likely implementation of the CNG special tax after 31 Dec 2009. It makes sense to offer the 'carrots' to build up the critical mass in CNG bivalent car population currently. It will then be too painful for such owners to dispose their vehicles, once the CNG special tax is implemented.

 

Think twice before jumping onto the CNG bandwagon.

Edited July 16, 2008 by Koolaba

[Kianbeng]

ok so I guess it's probably a wear and tear thing. It's unfortunate the parts isn't that lasting. I was hoping they last as long as the tank

[Ahyoo2002]

Haha,

 

I am just wonder why the delay in building the station? Mandai was late by many months. They said Serangoon North will have one by Aug, now I heard they said next year?

[Dankoo]

I am not surprise that CNG price will = Petrol in the coming mths looking at the way the prices go north at leaps and bounds...so I have put off the CNG idea liao

[Carlover76]

I agree too that CNG = Petrol price in the near future.

 

I just happen to spoke to another supplier that he is also busy doing the CNG trade so guess many suppliers are switching to do CNG business as many car owners are changing to CNG.

 

As demand increase, more stations needed so the supplier's cost goes up, they will increase the CNG price to cover their cost, this is a fact.

[Picanto]

its all about supply and demand. the more the demand for cng, the higher the price will go. the price difference between between petrol and cng will close up. its all about profiteering in this industry.