The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Economic Benefits

Reference Number: MTAS-820
Tennessee Code Annotated
Reviewed Date: September 19, 2017
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The use of CNG not only helps the environment, but it is also economically wiser as well. One of the biggest advantages CNG provides is an affordable price. As the world continues to experience ongoing hikes in the cost of gasoline, the low price of CNG offers a glimmer of hope. CNG is typically at least 30 percent cheaper than gasoline. Natural gas vehicles have been introduced in a wide variety of commercial applications, from light-duty trucks and sedans such as taxicabs, package delivery vans, postal vehicles, transit buses, street sweepers and even school buses. In California, transit agency buses are some of the most visible CNG vehicles. Below is a chart from the U.S. Department of Energy showing the difference in prices between gasoline, diesel and CNG.

 

U.S. Department of Energy
Alternative Fuel Comparison
Jan-March 2011
Nationwide Average
Price for Fuel
Nationwide average
Price for Fuel
4th Quarter 2010
Gasoline (regular) $3.69 $3.08
Diesel $4.04 $3.45
CNG $2.06 $1.93

 

As you can see, the margin between the price of gasoline and CNG is significant and is clearly more efficient.

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