Brazil’s Potigás Notes 50% Price Advantage of CNG

Brazilian gas company CompanhiaPotiguar de Gás (Potigás), responsible for distribution of gas in the state of Rio Grande do Norte, has analysed data from a survey of prices by the National Petroleum Agency fuels, recorded 14 to 20 February. According to Potigás, the cost per kilometer of Compressed Natural Gas (CNG) was BRL 0.195 (USD 0.05), while gasoline was BRL 0.386 ($0.10) and ethanol was BRL 0.451 ($0.11).

Taking into account the monthly consumption of the driver, the savings with CNG reaches 57% in replacing the use of ethanol and 49% compared with gasoline.

In Rio Grande do Norte, the driver who travels on average 100 km a day would have a monthly fuel cost of BRL 585 (USD 146) with CNG. The same three thousand kilometers / month would cost BRL 1,157.34 and 1,352.40 (USD 288.89 and 337.60) for gasoline and alcohol respectively.

“The expectation of Potigás is that these savings increase as the reducing cost of gas is passed on by filling stations,” said Commercial Manager Potigás, Franciney Batista, referring to reduction of CNG on average six cents cheaper per cubic meter since the start of February.

Potigás has provided a table (in Portuguese), included here, whereby drivers can monitor the economy for consumption bands 25-200 kilometers traveled per day.

The methodology is based on average list prices announced by the ANP (National Agency of Petroleum), and using the same model car manufactured with three fuel options – the Fiat Siena. It’s possible to go 12.5 kilometers per cubic meter of CNG, 10 km with one liter of petrol and 7 km with one liter ethanol.

Potigás serves 61 gas stations in the State, that sell close to 135,000 m³ / day. Among these, 49 are located in the Greater Natal region (Christmas, SG Amarante, Parnamirim and Macaíba). The company sells more than 50% of its gas to operators of Natural Gas Vehicles (NGVs).

https://www.ngvglobal.com/blog/brazils-potigas-notes-50-price-advantage-of-cng-0225