Converting SME’s to Save on Fuel Costs

Converting to NGV has never been this crucial for SMEs!

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Petrol prices have become a constant problem in South Africa. The biggest factor in the fluctuation of petrol prices in South Africa is the global price of crude oil (which is used to produce diesel and petrol).  

This is a huge factor for every South African citizen, particularly Small to Medium Enterprises (SMEs) that rely on transport and mobility. These range from logistics companies to the local plumber who has to travel from one location to the other to make an income. 

All SMEs experience internal difficulties which make generating profit a bit of a struggle. This varies from not making enough profit to having too many expenses. Amongst these expenses, the cost of getting from A to B is one of the biggest cost factors to overcome.

Because oil is traded in Dollars, the Rand/Dollar has a direct impact on how many Rands are required to purchase a barrel of oil. When the Rand depreciates against the Dollar, which has been the case, it increases the Rands required to purchase the same amount of oil. How can an SME control this? What control does Bob the Builder who relies on his bakkie to get him around have on this? Little to none! 

An alternative fuel: An economic life-saver 

SMEs, who rely on mobility to generate income, are not restrained to using petrol or diesel. Across the globe, various transport-reliant businesses have converted to Natural Gas as an alternative fuel for their bakkies, vans, scooters, motorbikes even delivery tricycles! This global trend is due to the reliable price of Natural Gas, which, contrary to petrol and diesel, is not reliant on the Rand/Dollar rate. Natural Gas requires very little refining and no vigorous maintenance, as opposed to crude oil. Natural Gas is exactly that, Natural. 

“I think many people are realising the economic, as well as the environmental, benefits of using CNG as an alternative fuel” Abdelhakim, manager of Al Etihad Centre (NGV Global News)

Easy as 1,2,3 

SMEs can easily convert their current vehicles to run on Compressed Natural Gas (CNG), this conversion can be done to have the vehicle run on Natural Gas as a bi-fuel, with the option to both Natural Gas and petrol. 

NGV Global has updated its report on the number of natural gas vehicles (NGVs) and refuelling stations, country by country. According to the information at hand, there are now more than 27 million NGVs in the world. Growth is forecast to exceed 30 million by 2024 - NGV Global. 

NGV Gas, a division of CNG Holdings is currently helping various SMEs convert their vehicles and save on their fuel bill. CNG Holdings has filling stations in Langlaagte, Dobsonville, Vanderbijlpark, and Pretoria. 

The kit can be purchased or financed and can be easily installed by CNG Holding’s approved workshops. NGV Gas is currently converting petrol and diesel vehicles up to 185KW for less than R20 000*. Despite the soaring price of petrol and diesel, SMEs can survive. For information on converting your vehicle to Natural Gas, contact us on 0860 116 917.

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