Texas’ Natural Gas Motor Fuel Sales Exceed Expectations

Air & Water Quality

Posted on: Wednesday, September 10, 2014

Natural gas vehicles are cost efficient and boast low emissions, and it seems that Texas has caught on. Sales of natural gas as a motor fuel are surging in Texas. In October 2013, Texas Railroad Commissioner David Porter launched a natural gas initiative to promote natural gas as a transportation fuel throughout the state of Texas, and recent reports are promising. According to fiscal 2014 tax revenue, as of July 31, 2014, sales of compressed natural gas (CNG) and liquefied natural gas (LNG) motor fuels doubled projected numbers, totaling $2,178,199.

In a statement, Porter said, “At 15 cents per gallon equivalent, $2,178,199 of motor fuel tax equals sales of 14,521,326 gallon equivalents of natural gas.” The gallon equivalent Porter mentions describes the amount of CNG or LNG with the same amount of energy as a gallon of gasoline or diesel fuel.

State forecasters projected tax revenue from natural gas as a transportation fuel to be $992,000, or equal to sales of 6.6 million gallons equivalents. The totals came in at $2,178,199, nearly 220 percent more than the estimates. 

The steady sales of natural gas as a transportation fuel in Texas give the state a promising outlook for the future. “Natural gas vehicles are becoming mainstream faster than expected,” Porter said. “And there’s plenty of room for growth. These excellent sales figures represent only a fraction of potential sales, as more and more fleet operators take advantage of the cost savings, lower emissions and energy-security benefits of Texas natural gas.”

Natural gas vehicles emit half as many air pollutants as gasoline and diesel vehicles. Not only are they better for the environment, they also offer significant cost savings for their owners. The increased use of natural gas in cars and trucks is definitely good news for Texas, not just for the environment but also for the state’s economy.