Just bringing up an old news on CNG. Is this the cause of
Transcab bringing in Chev? I really wonder what is the future
of CNG in Singapore? Any views pls?
End of
road for CNG cars ?
Tax break to end this year; duty to be levied on gas from next
year
By Christopher
Tan, Senior Correspondent
WITH compressed natural gas (CNG) cars being ineligible for the
green vehicle rebate (GVR) and a duty being levied on gas from next
year, two reactions have surfaced.
In one camp are the detractors, who say the developments will sound
the death knell for the sputtering CNG industry. In the other are
proponents who believe that gas will still be cheaper than other
fuels, even with the levy.
The GVR - given out in the last decade to buyers of CNG, petrol-
electric hybrid and full-electric cars - reduces the main car
registration tax by 40 per cent. The rebate was supposed to have
expired by the end of this year, but it was announced at last
week's Budget that it would be extended until Dec 31 next
year.
But not for CNG cars.
The Government had announced in 2009 that GVR for these cars would
cease by the end of this year, citing that they were not
' significantly cleaner ' than petrol
cars. It had also added then that a 20-cent- a-kg duty would be
levied on gas sold at the pumps from Jan1 next year.
Nevertheless, some in the industry were still surprised.
For example, Mr Gilbert von der Aue, who
heads C. Melchers' oil and gas department, said he had assumed that
the minister's latest announcement extending the GVR had superseded
the 2009 one. 'No one informed us of this, and certainly no one has
engaged the industry on this,' he said. He added: 'In any case, I
think what we've been doing for green vehicles has always been too
little, too late. Instead of one-, two-year extensions, we should
have permanent incentives based on what's in a vehicle's
exhaust.'
Mr Johnny Harjantho, Smart Cab's managing director, said that with
the duty, the savings CNG users have been enjoying will no longer
be substantial. Others said CNG cabbies, numbering about 2,700 and
growing, will be the hardest hit. But Trans-Cab, with its 2,000 CNG
cabs, is optimistic. Its managing director, Mr Teo Kiang Ang, said
CNG will still be cheaper than petrol or diesel after the duty:
'Our drivers spend $30-plus a day on CNG, compared with around $45
on diesel.'
Prime Taxis, which has about 40 petrol-electric hybrid taxis on the
road, is cheering the extended validity of the GVR and plans to
expand its fleet of such cabs to 200 by year's end. Its general
manager, Mr Tan Soon Chye, said: 'It's why our company is focusing
on hybrid taxis.'
Land Transport Authority figures indicate 2,709 gas-run passenger
cars as at the end of last month, up 1.2 per cent from that at the
end of 2009. In that period, the number of CNG cabs jumped 43.3 per
cent to 2,659 units.
Reacting to news of the duty, retiree Yap Wee Meng, 62, who owns a
CNG-petrol bi-fuel Chevrolet, said: 'That's not very encouraging. I
won't be too eager to use CNG then.'
He has been toggling between petrol and gas for his car, spending
about $17 every two days on gas. He estimates that the duty will
push his bill to $20. Mr Albert Pang, managing director of
Chevrolet dealer Alpine Motors, said demand for CNG models peaked
when petrol prices soared in 2008.
He said: 'CNG cars are still not as refined. There are still some
hiccups, like power loss and occasional stalling.' Of the
five gas refuelling stations here, one has since closed.
