PrintMay 12, 2011
How to Switch to CNG while Saving Taxpayer Money
On April 6, a bipartisan group of 180 congressmen introduced the NAT GAS Act of 2011 (HR 1380), an expensive bill designed to move American transportation from imported oil to domestically produced compressed natural gas (CNG). Not only would it give consumers and businesses a 50 cent per gallon-equivalent subsidy for fuel purchases, but it would also give tax credits to car makers, filling stations, and vehicle buyers. The bill would add at least $3 billion to the federal government deficit each year for the next five years. We believe that, since 2006, the price advantage of CNG as a fuel for automotive vehicles has been so great that no government subsidy need be required. The following chart compares CNG and gasoline prices:The 180 cosponsors of the bill have a worthy goal. Indeed American vehicles should be switching from imported oil to domestically-produced natural gas. Congress is addressing a valid "chicken and egg" problem. Most households and businesses will not...(Read Full Article)
