C.N.G. margin hint by Mr Brill

Press, 16 July 1980, Page 5

C.N.G. margin hint by Mr Brill

PA Wellington The public have every reason for confidence that the margin between the price of petrol and the price of compressed natural gas- will remain, says the Under-Secretary for Energy (Mr Brill). “The Government made the commitment in last year’s Budget to keep a substantial margin between the cost of petrol and C.N.G. and that promise will be kept,” he. told a Kapiti electorate National Party meeting. There might be some confusion because the Natural Gas Corporation had asked for a sizeable price rise. “This is just a one-time rise as the supply is switched from Kapuni to Maui gas and ic not likely to recur,” Mr Brill said. “It is riiuch lower than recent increases in the price of petrol.” Some recent statements criticising the Government’s C.N.G. conversion plan were one-sided. Although it was difficult to give an accurate figure for vehicles converted to run on C.N.G. — because these conversions were not monitored by any one

body — the Government’s research showed that it was about 3500, and not 2000 as reported by one newspaper. Another 1900 conversion ' kits had been ordered from the main equipment suppliers and would probably be installed soon, Mr Brill said. Some cynicism had been expressed about the estimate of 150,000 conversions to C.N.G. by the end of 1985. “I think the point should be made that, in five years time, the reticu- . lation of natural gas will have extended to. a much wider area and, as this extension occurs, a larger number of vehicles will have access to C.N.G. filling stations.” Many of these conversions were expected to be in fleet vehicles or those used for business, just a few conversions being done by private motorists. Many fleet owners and business firms were interested in converting to C.N.G. and, while only a few had yet made a firm commitment to go ahead, the next year or two could see a lot of momen-

tum as they were provided with' proof of its distinct advantages and- took into account the tax incentives offered. Mr Brill said he' had surveyed Government departments to assess their conversion programmes. Of the vehicles close to the gas pipeline and immediately suitable for conversion to natural gas, almost one-third would lse converted by the end of this financial year. C.N.G. will be available only in the North Island.