Even with gasoline prices reaching higher and higher, and natural gas prices at decade lows, consumers are doing as little as possible to adopt natural gas vehicles. As investment blog Seeking Alpha found out, the answer isn’t so complex.
The issue is of course, a classic chicken-and-egg problem. Looking at fleet customers as an example, a firm called PLS Logistics published a white paper on natural gas vehicles (specifically, LNG, or liquefied natural gas, commonly used in commercial applications like trucking). The biggest stumbling block by far was the lack of infrastructure available for fueling NGVs. Even in the face of substantial awareness about NGVs, as well as optimism that they will be adopted in the future in some capacity, literally no one is planning on purchasing NGVs in the next 12 months.
One interesting takeaway is that a quarter of respondents thought that there was zero price difference between diesel and natural gas. Natural gas is about $1.50 per diesel equivalent gallon (the unit used by PLS to measure an equivalent quantity of natural gas). Good news for NGVs comes in the form of a GE-backed project to build 250 filling stations for both CNG and LNG fuels – though as Seeking Alpha notes, demand for NGVs may be affected as much by low natural gas prices as high gasoline prices.