Argentina’s NGV industry introduces major bill to roll back CNG price

On August 3 a new CNG Bill was introduced in the Argentine Senate and the Chamber of Deputies,

highlighting the need to roll back the price of this environmentally-friendly and economical fuel to

March 2016, before the strong increases implemented by the current government, and to regulate

the price throughout the national territory.

The first article of the project “establishes the scheme of support and promotion of manufacturing

industries of CNG conversion kits and cylinders, and workshops for installation and maintenance”;

while the second article calls for rolling back “the value of wellhead destined to CNG to March

authorizing an increase from that month, which cannot in any case exceed 100% of the value at the

date of enactment of this Act.”

The initiative, presented by the Argentine Chamber of Gas Equipment Producers (CAPEC, as in its

Spanish acronym), is also collecting signatures on the online platform Change.org, where users and

lawmakers are encouraged to learn about NGV industry history in Argentina and how it has been

weakened, with sharp declines in sales and firing of personnel, suffered due to increases in recent

years:

NGV industry was born as a cheap fuel in the 80s, during the presidency of Raul Alfonsín, allowing to

pass moments of inflation and hyperinflation for those who used their vehicles to work. As time

passed it became an industry with exported technology for more than 1,000 million, and employing

more than 50 thousand people (direct and indirect jobs).

Today natural gas is one of the utilities that have increased the most; while in the presidency of

Cristina Fernandez it had experienced a 300% increase in wellhead. From April 2016, CNG has

increased again 400% and government has also implemented new taxes. It has produced a 50% drop

in new CNG conversions and up to 80% in several regions of the country.

Manufacturers of compressors, cylinders, conversion kits and applied electronics, producers of

complete equipments, assembly workshops, industry suppliers, have already seen the need to

reduce staff in the same percentage as the drop in sales. Therefore, we ask the CNG Law to be

approved on 08/11/2016.

NGS INDIA