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Vehicular Natural Gas (CNG) gains strength in Rio de Janeiro with tax exemption

Written by Bruno Teles
Published 29/03/2023 às 17:17
GNV
CNG (photo/disclosure)

Cariocas have seen vehicular natural gas (NGV) become a more advantageous fuel option since the federal government decided to maintain exemptions from PIS and Cofins rates. 

CNG is today the most economical option in the state, with savings of more than 35% per month compared to gasoline, based on average station prices. Additionally, CNG provides twice the yield of ethanol, making it a more cost-effective option.

RJ has the largest fleet of cars with CNG

With more than 1,6 million light vehicles converted to CNG, Rio de Janeiro has the largest gas fleet in the country. the dependence on natural gas across the state is facilitated by over 650 fuel stations. Today, a popular car runs about 14 kilometers with 1 cubic meter of CNG, 7 kilometers with 1 liter of ethanol and 10 kilometers with 1 liter of gasoline, which means that CNG is more economical.

To compensate for this savings, CNG must cost twice as much as ethanol, based on the current units sold: gasoline and ethanol in liters, and CNG in cubic meters. In addition to being more economical, CNG is also less polluting: it emits an average of 20 to 30% less carbon dioxide than gasoline. Those who opt for fuel are entitled to a 62,5% discount on IPVA.

See how to calculate the cost of CNG

To help calculate the benefits and savings of using cubic meters of CNG, Naturgy provides an economic simulator at its website. To encourage the conversion of vehicles and the advantages of using CNG, Naturgy will launch a media campaign in the state of Rio de Janeiro.

In addition to the company's social networks, the distributor's productions and advertisements will be broadcast on offline media such as radios, bus doors and LED panels in the coming days.

CNG and civil aviation kerosene remain tax-free

Fernando Haddad, economy minister, confirmed that natural gas for vehicles (GVN) and aviation kerosene, which were due to be reinstated from March 1, remained exempt.

Asked about the reason, Federal Revenue Secretary Robinson Barreirinhas said that it is a “government decision involving consumers of these products, the final consumers who benefit from them”. The minister did not explain the reason, but said that the exemption would last until the end of the year, but Barreirinhas later clarified that it would last four months.

Haddad spoke in an interview, announcing the resumption of federal taxes on gasoline and ethanol from the first day of this month of March. The minister said that, as the Petrobras previously announced that it would lower gasoline and diesel prices at dealerships, consumers will perceive it as less valuable.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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