RWE Group

Czech NGV Stakeholders Push for Excise Breaks, NGV Global, 17 October 2006

Members of the Czech Gas Union, led by gas supplier RWE AG, are asking for the removal of excise taxes on natural gas used for transport to spur increased use of natural gas vehicles (NGVs) in the Czech Republic. Bloomberg reports that the call was made at a press conference earlier this month ahead of proposed amendments that went before the Czech Parliament this week. The move is expected to lead to increased investment in compressed natural gas (CNG) refuelling stations.
"Our goal is to create conditions for consumers to be motivated to make the switch," said Josef Kastl, the union's general secretary. Stakeholders signed contracts with the government earlier this year to establish programs to help the country meet EU targets.
The Gas Union predicts consumption of natural gas in cars and buses will rise to 595 million cubic meters of gas in 2020 from about 3.2 million last year. The country's total annual use of natural gas, imported from Russia and Norway, is about 9.5 billion cubic meters.
The agreed program will establish 100 CNG refuelling stations by 2020, at an estimated cost of 1 billion Czech koruna ($US44.2 million,) with another 56 stations to be operational by other means
The Bloomberg report says the union has called for no excise tax on the fuel until the end of 2011 and a gradual increase in the tax through 2020.


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