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Natural gas generated more than US$ 108 million in revenue for the State in January

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Natural gas generated more than US$ 108 million in income for the State in January, due to royalties, not including the amount that corresponds to the liquids extracted from natural gas, according to Perupetro.

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And in the case of CNG, between 2005 and 2019, the savings generated by its consumption compared to other fuels amounts to more than US$ 7,400 million.

The rise in fuel prices in Peru, according to the application I facilitate, the official site of the Supervisory Agency for Investment in Energy and Mining (Osinergmin), has currently led to price levels that fluctuate between S/ 17.00 and S/ 23.00 in the different districts of Lima and Callao. This rise is due, among other factors, to the conflict between Russia and Ukraine, which has been causing the increase in oil prices worldwide, exceeding US$ 100 per barrel, in the case of WTI and Brent crude markers.

In this context, CNG is presented as the cheapest option for automotive use in the Peruvian market. For example, at the end of May 2021, the NGV competitiveness index stood at 46% compared to LPG, 58% compared to diesel and 65% compared to gasoline.

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This, because it has a stable price and because it is produced in the country, with sufficient reserves to supply the automotive market for more than 30 years, is subject to rates regulated by Osinergmin and its composition cannot be modified, selling the same product in all Service stations.

Unlike other fuels that must be imported, they depend on international prices such as a barrel of oil and are subject to external factors such as armed conflicts and decisions by producing countries to reduce their market share. etc. that influence the behavior of the international hydrocarbon market.

This structure and nature of the market allows users of Lima and Callao to access the same product (NGV) and with a similar (not equal) price at the Service Stations that sell said fuel. All companies in the NGV market can only be differentiated by geographic location, promotions and additional services that they offer to the end user; however, the high competitiveness and transparency in their prices contributes to a high coincidence in the final prices.

It should be noted that the weighted average price of a cubic meter of CNG in Lima has decreased in the last 16 years from S/1.59 to S/1.52: S/0.07 in absolute terms, but in real terms it would be much more if you add the accumulated inflation in all these years.

Along these lines, AGESP emphasized the importance of the widespread use of Natural Gas, especially CNG, standing out as the best alternative for the country in the face of price increases suffered by other fuels and for being an environmentally friendly fuel.

“For this, it is also necessary to work on a national plan that is based on promoting the conversion of more vehicles, in such a way that the mass use of CNG is generated, said plan must include growth indicators that must be subject to permanent monitoring of its compliance by the competent authority”, he pointed out.

Source: Larepublica

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