February 14, 2012. In recent years the cost of converting a vehicle has been reduced by an average of USD 300. Edgardo Escobar, general manager of Peruana de Gas Natural (PGN), explains that the actual cost of this service is about USD 1.200 for fifth-generation systems for fuel injection engines.
The executive argued that one or two years ago the cost was USD 1.500, but the conversion has dropped due to increased number of workshops and brands offered in the market and as a result of technology development by suppliers. According to Escobar, most are imported from Argentina and Italy.
Currently there are over 20 financial sector entities that subsidize the conversion. Escobar said Peruvian banks subsidize the cost of vehicle conversion and even buying a 0 kilometer car through the fuelling control system administered by Cofide (COFIGAS).
One of the problems that existed before to increase the conversion of vehicles to CNG were the few stations that existed in the market. Escobar noted that the entry of new stations for the sale of natural gas has led to the increased supply over demand growth. In this regard, he said the challenge of business and government is to promote increased conversions so as to achieve the desired scale consumption of natural gas and a fair balance between supply and demand.