Clean Energy: U.S. lowers LNG tax

Within the Highway Trust Fund legislation passed by both Houses of the U.S. Congress this week and expected to be signed by President Obama, is a provision to equalize the federal tax on liquefied natural gas (LNG) to an energy-equivalent basis with diesel and gasoline.

The result will lower the tax on LNG by 14.1 cents per gallon. Twenty-six State Legislatures have already taken similar action, Clean Energy Fuels said in a statement.

“The use of LNG as a transportation fuel continues to grow in heavy-duty trucks, locomotives and large ships because it burns cleaner and the price is reliably lower due to the fact that it originates from North America. Anyone who cares about a cleaner environment and energy independence should be very grateful for what the U.S. Congress did this week by making LNG that much more competitive as a transportation fuel of choice,” Andrew J. Littlefair, president and CEO of Clean Energy Fuels said.

According to Clean Energy, natural gas fuel costs up to $1.00 less than gasoline or diesel, depending on local market conditions, and also reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles.

Image: Clean Energy Fuels