Boom in CNG car sales seen in Singapore

Margaret Perry, Channel NewsAsia 8 Jul 08;

SINGAPORE: Companies selling cars fuelled by Compressed Natural Gas, or CNG, are seeing a boom in sales.

Rising petrol prices and the Green Tax Rebate are driving motorists to switch.

"Just six months ago we (sold) an average of 190 cars a month, of which only 20 to 30 per cent are CNG cars. Today we (sell) about 250 cars a month, out of which 70 per cent are CNG cars," said Valerie Tan, managing director of Pinnacle Motors.

Many customers have been lured by cheaper fuel bills and the Green Tax Rebate, which gives them a 40 per cent discount off the car's Open Market Value.

One such person is Melvin Toh, whose budget has been increased when he bought a new CNG car earlier this year.

The bachelor, who drives approximately 700 kilometres a week, rarely uses the boot, so the space taken up by the CNG tank is not a problem.

However, Toh, who lives in Toa Payoh, has to drive to Mandai Link every two to three days to fill up with CNG.

There are currently two CNG stations accessible to the public on mainland Singapore - one at Jalan Buroh in Jurong and the other in Mandai Link in the north. A third is operating on Jurong Island.

"Of course it is a bit inaccessible, but I still feel that because I want to reduce my transport costs it's still worth it," said Toh.

The Automobile Association of Singapore advises motorists to take into consideration the travelling time required to the three refuelling stations in Singapore, and the ease of refuelling in order to maximise their cost and fuel savings.

The association said it receives regular enquiries from its members about the installation of CNG technology. It will be holding a CNG Conversion Workshop on July 26, but due to strong demand, a second workshop will be added.

A third CNG refuelling station will be ready in Serangoon North by February 2009.

Sembcorp Gas, which runs the Jalan Buroh station in Jurong, said demand there has exceeded expectations. And the company is looking for other suitable locations.

Despite it being more inconvenient for CNG car owners to fuel up, significant savings have been found.

To fuel a 1.5 litre car to drive 200 kilometres, it will cost about S$11.50 using CNG, based on the current pump price at Jalan Buroh, compared to S$34.20 before discount if a 95 Octane petrol is used.

With a saving of S$22.70, the real question should be how much time and effort is one truly prepared to spend to go green?

-CNA/os