Q: How is the price at the pump calculated?
A: The price of natural gas from your supplier
• Plus the per gallon compression charge (lease)
• Or, plus the amortized cost of purchase of equipment
• Plus the cost of electricity for the compressor.
Natural gas $0.40 per gallon
Compressor Charge per gallon $0.95
Electricity to run fuel station per gallon $0.01
Total cost per gallon at the pump $ 1.36
Q: Are the Federal and State tax credits for CNG causing budget concerns?
A: Incenting fleet owners and private vehicle owners to convert to an alternative fuel does cost money. BUT the Federal government and the State of Oklahoma consider this an affordable trade-off. Right now the incentive legislation at both the federal and state level expires in 2015. Considering the employment created by the natural gas industry in Oklahoma, this incentive is a natural for us.