Historically, gas-powered (CNG) vehicle conversions have grown at the pace of increases in gasoline, its main competitor. However, in the last year, the level of conversions is declining despite the fact that the price of petrol continues to rise.
The trend is reflected in the statistics of Enargas, the gas regulator: last year there was a monthly average of 7 conversions.200 vehicles and so far this year that level has dropped to 4,400. Why don’t users opt so much for the gas-switching variant of the car when it costs half as much as other liquid fuels?
After the last increase applied last Thursday, the average price of Premium gasoline in the Autonomous City of Buenos Aires (CABA) went from $163.10 to $169.30. Meanwhile, premium gasoline has increased from $209.10 to $217. CNG, meanwhile, has an average price of $92.31. But there is a large gap in the country: in the Federal Capital, where there are more charging stations, it costs 65 dollars; on the GBA, $92; in Córdoba, $105 and in Corrientes, $110.
Among the reasons that explain the drop in conversions, the manufacturers of natural gas systems explain that, despite the periodic adjustments that petrol has, “It’s still very cheap.” Especially when compared with other countries. “The price of gasoline has risen below inflation. On the other hand, gas has followed the inflationary curve,” explains Federico Baratella, president of the Argentine Chamber of Conversion Equipment Manufacturers (CAPEC GNC).
This price situation means that many dual service stations (i.e. they sell liquid fuels and methane), unable to absorb the higher costs deriving from the delivery of petrol, with prices regulated by the Government, they transfer them at the price of methane which is free. “For this reason the increase in gas was greater,” they explain to CAPEC.
Another situation has to do with equipment prices rising at the rate of the dollar, even on the rise. According to Baratella, products such as steel or bronze used in equipment components have increased greatly since the Russo-Ukrainian war, Baratella says.
Finally, another element that acts as an obstacle for user access to the equipment is the foundation. Conversions can be paid with the official Ahora 12 or 18 schedule but with interest rates of 48%. Although they are below inflation, “there are many people who do not have the card limits that allow them to access equipment so easily,” says Pablo Pombo, secretary of CAPEC.
In any case, the use of methane always has followers among motorists who use the car a lot and can amortize the investment in installing the system. He average price of a fifth generation CNG plant for a Fiat Cronos (one of the best-selling cars) with a 60-gallon tube, it’s about $220,000.
How are the returns of both systems? Average consumption is 11 km per liter of petrol. That is to say, taking the values in the City of Buenos Aires: to travel 30,000 km you need 2727 liters of petrol. At $174 (one liter of super gas), $474,498 will be needed. If the calculation is made with premium gasoline (priced at $219), the cost will be $597,213.
If instead methane is used (1 mt3 yields approximately the same as 1 liter of petrol) taking into account an average petrol price of 75 dollars, the user will spend 204,525 dollars. With which, covering that distance (30,000 km), The investment is amortized over a year.
In Argentina there is currently a 12.9% of methane cars out of the total fleetwhich already exceeds 14 million.
Source: Clarin
