The Ministry of Energy and Mines (Minem) reported that more than 36,000 light gasoline and LPG vehicles have accessed the use of natural gas to date, through the NGV Savings Program, which finances the conversion of their engines to natural gas with resources of the Energy Social Inclusion Fund (FISE). Lima is the region that leads the conversions, with more than 25,000 vehicles converted to CNG.
The 2022 Annual Promotions Program committed a budget of S/ 66 million (U$S 18 million), with the aim of closing this year with 70,000 vehicles converted to natural gas across the country.
In addition to Lima, this program is carried out in the regions of Callao, Junín, Ica, Cusco, Piura, La Libertad, Áncash and Lambayeque, and it is planned to be extended to other regions of the country to the extent that they have CNG stations, as is the case of Cajamarca, Arequipa and Tumbes, which are the closest to having these filling stations.
The conversion is carried out in mechanical workshops that are authorized by the Ministry of Transport and Communications (MTC), and the converted vehicles are inspected by a certifying entity that verifies that the process has been carried out in accordance with current regulations, ensuring that the state-funded conversions are of good quality and safe.
For beneficiaries, the return period is up to 3 years. In the case of users from the provinces, the program contemplates the allocation of a discount voucher of S/ 1,000 (U$S265), applicable on the final price of the conversion, which helps reduce the value of the installment and makes the monthly payment of this credit viable through the CNG refueling at the service stations.
With the vehicle conversions, the Minem wants Peruvian drivers to have access to a cheaper and more sustainable fuel that the country has, and to not be affected by the strong volatility and rise in international oil prices, which currently affect in the price of diesel and LPG at the local level. It should be noted that, since the end of 2021, an extraordinary scenario of increased fuel prices has been taking place, due to various external factors, which has raised in the first months of 2022.
The NGV Savings program, which allows end users a monthly saving of more than 50% in fuel consumption, is part of the national policy of widespread use of natural gas, which the government of President Pedro Castillo is decisively promoting so that all Peruvians can enjoy the benefits of this clean and cheap fuel.