Sales of compressed natural gas (CNG) vehicles in Singapore have had a major impact in 2008 due to the difference in oil prices. By the end of last year, there were 2.444 cars which can run on CNG, 10 times the population in 2007. Taxis which run on CNG proliferated too, with their numbers rising by more than four times to 977 units.

   The CNG conversion for buses and trucks began to spread too. For example, Ten-League Investments sold the first natural gas six-axle vehicle which can haul 40-foot containers. The truck was sold to the operator of the CNG refueling station Smart Energy, which will use it to transport gas to its new facility in Serangoon North. While the first 30 CNG buses were marketed by King Long Singapore, a company that imports the units manufactured in China , to two travel agencies in the country.

   Charles Tan, director of King Long Singapore, explained that the lower cost of operation has become a less valid reason for converting vehicles to CNG as the prices of petrol and diesel began to fall into the second half of 2008. However, the executive said that buses powered by natural gas are cheaper than the diesel models, partly due to a discount for units considered green. For example, one of its CNG buses costs US$ 150.000 compared with US$ 180.000 for a diesel equivalent.

   Tan noted that the success of the gaseous fuel in Singapore will depend largely on how much the Government is willing to support it. During the announcement of the Budget, the Government stated that the tax on CNG pumps from 2012 will begin with a rate of 20 cents per kg. It was also reported that CNG cars still be accessing to the tax cut until the end of 2011. This bonus is equivalent to a 40 percent reduction in registration tax for particular cars and 5 percent for commercial vehicles.