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Federal excise tax credit

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  • Federal excise tax credit

    Before purchasing my Honda GX, I contacted Questar. Gordon Larson sent me the following email: "Steve. The CNG price has been between .58 and 1.23 since 1988. There currently is a Federal excise tax credit on the fuel that nets a .32 discount which may or may not go off a year from October. Without that the current price would be 93.8. Natural Gas prices are going up like all energy. We are regulated by the UPUC so we can not raise or lower are prices as we please. Even if prices go up and the tax credit does not get renewed we should always be well below gasoline. Questar has always had the lowest CNG rate in the nation. As well as the gas in our homes. We own our own wells and 50%. Of the gas we sell comes from those wells that by law we have to sell. That gas to our retail customers at cost of service. Gordon"

    I haven't heard anyone mention the "Federal excise tax credit". I fully assumed from this email that the difference between what we pay for natural gas in our homes and what we pay at the pump was this federal excise tax credit. This would negate the assumption of the Public Service Commision that Questar home customers are subsidising the vehicle natural gas.

    Does anyone have information about this? If correct, when the price increases, does Questar just pocket that additional 32 net cents? Or would Utah lose the tax credit? Could the credit be applied to infrastructure improvements? ???

  • #2
    Re: Federal excise tax credit


    Here is the link that describes the Federal Excise Tax Credit.

    This is for public fueling stations only. If you own a Fuelmaker and fill up out of your house, you are not eligible to take this credit (unless you own a business out of your home). See

    Questar takes 18 cents of this 50 cent tax credit and pays our Federal Road Tax. The 32 cents is then passed onto us the consumers. The 50 cent per GGE is to encourage strengthening the infrastructure, however, Questar's price is mandated by the PSC, so they pass the savings onto us.
    Last edited by Highmarker; 01-13-2009, 08:53 AM.
    Mountain Green, Utah
    2003 CNG Cavalier
    2003 CNG Silverado 2500HD