CNG price increases in Utah

[sfdarton]

The Questar website shows CNG increasing to $.85 July 1 and $1.08 on October 1, 2008. I dont mind an increase if it will be funding more CNG filling locations. Does anyone know if that is the case?

http://www.questargas.com/FuelingSystems/NGV/ngv.html

[mickey]

Re: CNG price increases in Utah

The Questar website shows CNG increasing to $.85 July 1 and $1.08 on October 1, 2008. I dont mind an increase if it will be funding more CNG filling locations. Does anyone know if that is the case?

http://www.questargas.com/FuelingSystems/NGV/ngv.html

Current CNG prices in Utah are going to be a short-lived fantasy for a variety of reasons. Among them:

1. Natural gas prices are ALWAYS seasonal. They double in the winter. Always have, always will.

2. The fueling infrastructure in Utah is a bunch of left-over 1980s garbage that Questar originally installed for their own use. It costs a quarter million dollars to install a new CNG fueling pump. And CNG vehicles are still relatively rare. That replacement cost will be shared among a fairly small number of customers.

3. Our fuel is currently tax-free. That isn't going to last. Nor should it. We use the same roads, so we should pay the same road taxes.

The one thing that we have going for us is that Utah and Wyoming have vast supplies of natural gas. That won't change any time soon. But prices WILL go up substantially, and they'll stay that way.

Enjoy it while it lasts! And check out my post about a Utah CNG Co-op. That will ultimately be the way to keep the prices as low as possible.

[darress]

Re: CNG price increases in Utah

Just to point out, not create an argument:
*Natural gas fuel prices in Utah dropped last year right when winter started and the usage was expected to increase---go figure?
*In Utah, at this point, CNG vehicles are by no means rare.
*Use of alternative fuels helps the environment and quality of life for everyone, CNG is very clean so why not continue to offer tax incentives to encourage its use? Or, why don't we all drive poorly tuned diesels and suck those black fumes all day long.
*WHY should/will CNG prices rise? Is it because fuel prices in general are high? If so, that's no good reason and amounts to nothing more than gouging. I don't have a problem with paying more to support the CNG fueling infrastructure, I will gladly do that, but it shouldn't be expensive just to create profit.

[John Mitton]

Re: CNG price increases in Utah

Moving this to the Utah forum...

[Dick]

Re: CNG price increases in Utah

The Rocky Mountain states have traditionally had lower natural gas prices due in part to the lack of pipelines to carry the commodity to eastern markets. The Rockies Express Pipeline is changing all of that. Last February, the pipeline was completed to Missouri, and next year, it will be extended to Ohio. That means the Rocky Mountain states are competing with millions of new consumers for natural gas supplies. As a commodity, the gas will flow to the highest bidder.

Sorry about that Utah. I live in Colorado and we are in the same boat.

[darress]

Re: CNG price increases in Utah

Who supplies the natural gas to those customers now? I won't even pretend to know anything about it, but it seems that the current supplier would just have more competition and the price would then be driven down by excess market supply (good for customers). Do you have any more info on the pipeline? Thanks for the post.

[bakaroma]

Re: CNG price increases in Utah

Don't forget the pipline going to Oregon or somewhere in the northwest and the one going to Vegas. Demand, demand, demand..... I say co-op get in early and we all save in the long run. Who knows how to write a business plan?

[taigacarol]

Re: CNG price increases in Utah

Don't forget the pipline going to Oregon or somewhere in the northwest and the one going to Vegas. Demand, demand, demand..... I say co-op get in early and we all save in the long run. Who knows how to write a business plan?

We had a CO-OP for electricity in Colorado and it was GREAT!

[Devo]

Re: CNG price increases in Utah

3. Our fuel is currently tax-free. That isn't going to last. Nor should it. We use the same roads, so we should pay the same road taxes.

Your fuel should not have been tax-free if you paid the flat $82 alternative fuel tax when you registered your NGV for the year. People haven't been paying the flat fee so that's why they've decided to put a per GGE tax.

http://www.eere.energy.gov/afdc/progs/view_ind.php/UT/5161

[darress]

Re: CNG price increases in Utah

Thanks for the link. I went to read the wording and was suprised to see that the fee is "required". The DMV offered this to me when I registeried my second bifuel vehicle and I paid it. The dealer of my first bifuel vehicle did not offer or even mention such a fee. I imagine this is the case in many instances. The DMV should be up on informing the public of regulations such as these and dealers requiring tax and registration fees should also be required to inform and collect this fee if it is/was condidered to be required.