Real-Time Quote
Quote | News | Chart | Details
LCOCV1 News & Analysis
Future of Nat Gas Vehicles Stalls
09 Apr 2012 EDT - CNBC.com
Page 2 of 2 | Prev Page
Show Entire Article

It’s the classic chicken and egg dilemma. Automakers are hesitant to build CNG powered vehicles if there won’t be mass sales. Without a slew of pumps around the country, the public will not buy/demand a large number of CNG models. And if there are not many people driving CNG cars, service station owners will not want to invest millions of dollars installing nat gas tanks or pumps that will generate little profit.

Despite the plans for many nat gas suppliers to grow the number of CNG pumps across the country, the increase will be slow.

Service stations make only a small percentage of their profits from the fuel they sell. Most of their profits come from the drinks, snacks, and other items they sell to people who come in to fill up. And from the service station owners perspective, the pumps that bring in as many customers as possible are the pumps that help drive the business.

Right now, compressed natural gas is a promising option for the future. In reality, few are filling up on the clean fuel.

Follow Phil LeBeau on Twitter: @lebeaucarnews

Page 2 of 2 | Prev Page
Show Entire Article
LCOCV1 News & Analysis
No recent news available
Real-Time Quote
omniture pixel