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.
https://www.ngvjournal.com/argentinas-ngv- industry-presents- major-bill- to-roll- back-cng- price/