Govt Should Set Minimum CNG Price Disparity

VIVAnews -  CNG Association of Indonesia said the Indonesian government should set the minimum price disparity between compressed natural gas (CNG) and premium at 60 percent. 

“Countries that have implemented CNG best set [the disparity] at around 60 percent,” said Secretary General of CNG Association of Indonesia, Danny Praditya, on Thursday, March 1.

He said 30 CNG private companies in Indonesia are now in operation. Nonetheless, prices and infrastructure have been the problems in developing CNG in the nation.  

“The government must really make calculation on the economic price of CNG,” he explained. 

If the price of premium fuel is raised to Rp6,000 per liter, it is not going to reach the 60 percent disparity with the CNG’s price. However, the effort could be the first step toward CNG conversion. 

He cited the use of CNG in Thailand, that was developed within 5 years. Around 250 thousand vehicles are now using CNG and the country is equipped with 500 CNG stations with a variety of incentives and monitoring.