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CNG Development

The policy statements made by the Hon Prime Minister in terms of CNG were made in the 2008 parliamentary debate on the amendment of Excise taxes on liquid fuels. These statements included:

1. Adequate CNG dispensing capacity with the setting up of a network of at least 40 stations within 2 years
2. Preference for the use of composite (steel and epoxy bonded fibre) CNG tanks to decrease the weight of the storage tanks for mechanical and safety reasons
3. A vision that there should be only  two fuels for transportation sector – single grade gasoline and CNG
4. No increases in liquid fuel prices for the next two years.

In addition, in the 2009 Budget presentation, Government advised of the following measures to facilitate CNG as a fuel as follows:

1. Removal of Custom duty and VAT on CNG equipment
2. Conversion of all public service vehicles to CNG
3. Measures to reduce the fuel subsidy from the then current $2.4 billion per year

The successful implementations of CNG as a transportation fuel are as follows:

1. The availability of refuelling stations
2. The strategy of vehicle conversions
3. The institution of an appropriate regulation system
4. Maintenance of CNG as the most economically priced fuel

Consistent with these policy declarations, The Minister of Energy and Energy Affairs has to seek Government approval for successful implementation of CNG to help accelerate the development of CNG