Drop in C.N.G. price forecast

Press, 19 February 1986, Page 7

Drop in C.N.G. price forecast

PA Auckland Compressed natural gas prices should fall when the Government deregulates the gas industry, according to the president of the Gas Association, Mr Jack McDowell.

By Mr McDowell’s calculations, the price of C.N.G. could be cut about 8c a litre.

Speaking at the association’s conference in Auckland yesterday, he said deregulation was now being considered by the Government and all controls and subsidies were likely to be removed. This would mean the end of the 45c development levy the Govern-

ment got on each unit of gas, at present priced at $2.28.

The Government repaid only some of that levy to the industry in support of its compressed natural gas programme, and planned to end that support by the end of next year. Mr McDowell said the industry could have funded its customer promotion and incentive schemes in full if it had not been levied. There would have been no need, he said, for Governmental interference, which had severely checked the impetus built up in the C.N.G. market.