Natural Gas Vehicle Sales Lower In 2014, And Call Goes Out For Alt Fuel Taxation

Natural gas vehicle proponents NGVAmerica has released the 2014 NGV Production/Sales Report after completing the organization’s annual survey of OEMs and approved aftermarket suppliers. The report provides natural gas vehicle (NGV) production/sales totals for the 2014 calendar year and analysis of market trends for light-, medium-, and heavy-duty vehicles.

The report shows overall sales for the year fell slightly as a result of the dramatic drop in the price of oil that occurred in the second half of the year and the impact this had largely on sales of light-duty NGVs to oil and gas exploration companies. However, significant growth occurred in both the medium- and heavy-duty market segments as a result of the still favorable economics these higher-fuel use applications generate.

A full copy of the report is available on the NGVAmerica website here.

Meanwhile on March 26, Representatives Todd Young (R-IN), John Larson (D-CT), Mac Thornberry (R-TX), and Ron Kind (D-WI) introduced H.R. 1665, the Alternative Fuel Tax Parity Act. The legislation would ensure that excise taxes on liquefied natural gas (LNG) and propane for highway use are levied at a rate consistent with their energy output relative to diesel and gasoline, respectively.

Highway use LNG produces 58 percent of the energy output of diesel, but is taxed at the same 24.3 cents per gallon rate. Similarly, propane produces 72 percent of the energy output of gasoline, but is taxed at the same 18.3 cents per gallon rate. The Alternative Fuel Tax Parity Act sets energy equivalent rates for LNG (14.1 cents per gallon) and propane (13.2 cents per gallon).

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