Natural Gas for Vehicles (NGV) Gains Momentum in Rio de Janeiro with Tax Exemption

Rio Residents See Compressed Natural Gas (CNG) Become a More Advantageous Fuel Option Since the Federal Government Decided to Maintain PIS and Cofins Tax Exemptions. 

CNG is currently the most economical option in the state, with savings of over 35% per month compared to gasoline, based on the average prices at gas stations. In addition, CNG provides double the mileage of ethanol, making it a more economical option.

Rio Has the Largest Fleet of CNG Vehicles

With over 1.6 million light vehicles converted to CNG, Rio de Janeiro has the largest gas fleet in the country. The state’s dependence on natural gas is supported by more than 650 gas stations. Today, an average car travels 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 CNG is more economical.

To offset this savings, CNG must cost twice as much as ethanol, based on current retail units: gasoline and ethanol in liters, and CNG in cubic meters. In addition to being more economical, CNG is also less polluting: it emits on average 20 to 30% less carbon dioxide than gasoline. Those who choose this fuel are entitled to a 62.5% discount on the IPVA.

See How to Calculate the Cost of CNG

To help calculate the benefits and savings of using cubic meters of CNG, Naturgy offers an economic simulator on its website. To encourage vehicle conversion 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 media, the distributor’s productions and advertising pieces will be displayed in offline media such as radio, bus doors, and LED panels in the coming days.

CNG and Aviation Kerosene Remain Tax Exempt

Fernando Haddad, Minister of Economy, confirmed that natural gas for vehicles (CNG) and aviation kerosene, which were supposed to be reinstated starting March 1, will remain tax exempt.

When asked why, the Secretary of the Federal Revenue, Robinson Barreirinhas, stated that it is a “government decision involving consumers of these products, the end 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, though Barreirinhas later clarified that it would last four months.

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