CNG drops below $1 per gallon
OKLAHOMA CITY – The price of compressed natural gas (CNG) is typically cheaper than regular unleaded gasoline, an average of about $2 per gallon cheaper in recent years.
The CNG price around Oklahoma City is now a jaw-dropping $.99 per gallon.
Last week the price at area Oncue Express stations was $1.49 per gallon.
It dropped 50 cents last Thursday after the federal government re-instated a 50-cents-per-gallon tax credit as part of the fiscal cliff agreement.
For Josh Chapman and the folks at CNG of OKC, the price drop has been great for business.
CNG of OKC converts all makes and models of gasoline vehicles to run on CNG fuel.
“We love it; it’s great for business,” Chapman said. “99 cents a gallon and normally you get a little better fuel mileage when you run on CNG, so you really can’t be that.”
The biggest drawback for consumers in the cost to convert.
Even with thousands in Oklahoma State tax incentives, it is still $6,000 to $10,000 to get your gasoline guzzler to run on CNG.
Land Enterprises Roofing Company just paid to convert the company’s first vehicle last week.
The conversion cost $8,100 and owner Brian Land is considering two more conversions in 2013.
“It’s Oklahoma fuel, that’s what sounds good to us,” Land said. “When financially it made sense it was a no-brainer. Do the calculations and see if it works out for you. For us it made sense.”
There are now almost 100 CNG fueling stations across Oklahoma.