With tariff exemption, CNG is more competitive in Paraná

In recent weeks, the scenario that allows for greater competitiveness of natural gas compared to liquid fuels intensified in Paraná, Brazil.

April 14, 2023. Less polluting than liquid fuels and safer, compressed natural gas (CNG) has always proven to be more advantageous for drivers who use it. In recent weeks, the scenario that allows for greater competitiveness of natural gas compared to liquid fuels intensified in Paraná, Brazil, with the decision of the federal government to maintain the exemption from the PIS and Cofins tariffs that tax CNG operations for another four months and also with the reduction in the price of gas provided by Companhia Paranaense de Gás (Compagas) to service stations.

As of February 1, the rate applied by Compagas for the vehicle segment was reduced by 15.75%, and as of April 1, a change in the calculation base of the taxes levied on CNG via Confaz allowed a additional reduction of 3%. “Compagas fully transfers all these conditions to the fuel reseller, but the definition of the sale price of natural gas to the end user ends up being a decision of the stations, which operate under a free trade regime”, emphasizes the General Director of Compagas, Rafael Lamastra Jr.

From January to April, with all the incentives, the CNG rate for Compagas service stations was reduced by R$ 0.89. “The company’s expectation is that the price to the consumer will be reduced in the same proportion and that drivers who use natural gas will have even more savings in their day to day,” he says.

According to the Fuel Price Survey of the National Agency for Petroleum, Natural Gas and Biofuels (ANP), referring to the week of March 26 to April 1, 2023 in Paraná, the average resale price of hydrated ethanol was R R$4.23 per liter, while regular gasoline cost R$5.84 per liter. The CNG cubic meter was worth R$ 5.49. An average operating capacity of 14 kilometers per m³ of CNG, 7 km per liter of ethanol and 10 km per liter of gasoline is considered. Considering the sale price and the higher performance, CNG can generate savings of up to 35% for those who use it.

It is also important to point out that Paraná drivers who have the CNG kit installed and up-to-date documentation have a discount of around 70% in the IPVA, paying a rate of 1% on the value of the vehicle, while for others is 3.5%. “It is a fuel with innumerable economic and environmental advantages”, says Lamastra.

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