Converting SME’s to Save on Fuel Costs

Building on Chinese savings

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In general terms, economic growth is closely linked with the distances we are able to travel - The closer to market, the lower the cost of transportation. South Africa has seen episodes of fluctuation in fuel prices and now more than ever, a reliable affordable alternative is needed.

If China can do it!

CNG fuelled vehicles are increasingly becoming the prime substitute to traditional fuels.

China leads the global development of Natural Gas vehicles, recognising the low-carbon, efficient and economical fuel, the Chinese government has endorsed the use of Natural Gas as an ideal fuel of transportation. Iran sits comfortably in the second position on the table of countries with the most natural gas vehicles (NGVs). According to NGV Global News, there are nearly 5 million natural gas vehicles in Iran, with 2,461 Compressed Natural Gas filling stations with a nominal capacity of 2,849,592 nm3/hr and 14,260 nozzles active throughout the country.

The Technology Road Mapping of Energy-Saving and New Energy Vehicles, confirms that natural gas vehicles have been treated as the major development tendency of energy-saving vehicles in China

Tracking behind China and Iran, many other countries such as India, Australia, Argentina, Germany, and Greece are converting their commercial vehicles to Natural Gas at a rapid rate. This global trend is one to be adopted. At a much slower rate when compared to the rest of the world, many large companies in South Africa are switching to CNG as an alternative fuel for their fleet vehicles. However, this switch is as vital for SMEs, seeing that formal SMEs contribute nearly 98.5% to the number of formal firms in the South African economy.

Did you know?Egypt’s Small and Medium Enterprises Development Agency (MSMEDA) has signed two contracts to convert 4,000 cars from diesel to compressed natural gas (CNG) fuel. The contracts were signed by Engineer Tarek Al-Mulla, Minister of Petroleum and Mineral Resources, Mrs. Niven Jameh, CEO of the SME Development Agency and representatives of Cargas and Gastec.

Key suppliers in the South African Natural Gas industry, CNG Holdings is pioneering the movement to the economic fuel alternative. A division of CNG Holdings, NGV Gas, has converted many fleet vehicles for various businesses, this has contributed to increased profit margins, taking into account the ongoing battle with petrol price hikes.

The SME Campaign

Current NGV Gas clients save more than R6. 00 per litre petrol, these are typically larger companies. To extend these savings to smaller companies, NGV Gas has launched a special SME campaign aimed at extending the savings opportunity to smaller fleets. CNG Holdings, through NGV Gas, is targeting SMEs with delivery vehicles and sedans. In just under 5 days, converted SMEs are assured to start saving on fuel bills. When compared to the rest of the world, South Africa is trailing far behind in the Natural Gas vehicle revolution, to make catching up easier, the NGV Gas kit can be purchased, or financed. Conversion can be completed on any vehicle type, from a small petrol run-around to an 185KW Diesel delivery vehicle.

Recent technological advances, the vast availability of Natural Gas and the recent Carbon Tax Bill have increasingly placed Natural Gas as an ideal and viable alternative fuel. SMEs could avoid excessive taxation by converting to Natural Gas.

The conversion

 Converting fleets to run on CNG is quick and efficient. Petrol or diesel tanks are retained in the vehicle, and the gas cylinder is placed in a safe pocketed place in the vehicle. The vehicle could either run on 100% Natural Gas or operate on a dual fuel system where both gas and petrol/diesel can be used. Vehicle conversions kits, consisting of the cylinders, injectors, filling nozzles, regulator, and ECU, are installed by SAGA-qualified and SAQCC-certificated NGV Gas engineers.

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