Visham Babwah, president of the T&T Automotive Dealers Association (TTADA), says he fully supports Opposition MP Colm Imbert’s call for the Government to give tax exemptions for hybrid vehicles as they are more cost-effective than Compressed Natural Gas (CNG). Babwah said there were “serious problems” with CNG. He said there were safety concerns to consider, such as improper installation of the kit by unauthorised people. If not properly installed, CNG tanks could explode.
Imbert made the recommendation during the debate to confirm the Excise Duty (Compressed Natural Gas Order, 2013) in Parliament on November 22. Imbert criticised the Government’s $500 million project to construct 22 CNG stations and convert 17,500 vehicles to CNG as a waste of taxpayers’ money. This project is expected to come on stream in 2015. Babwah said the world was moving towards hybrid and electric vehicles.
“I’m in full support of the recommendation to get tax exemptions for these alternate fuel vehicles. “I asked Finance Minister Larry Howai and Energy Minister Kevin Ramnarine what would be the cost to build the CNG stations, infrastructure and the cost to convert vehicles, but got no answer. “We don’t want to go down this road where we spend millions of dollars putting in infrastructure, and ten years down the road we realise we still have problems...”
Babwah said there were other modern technologies developing such as Fuel Cell Vehicles (FCVs) which ran on hydrogen, and the Government should keep abreast of new technology and see which would suit the country the best. Babwah said he hoped that there would not be a monopoly on the awarding of contracts for installation of the CNG units.
At the CNG excise duty debate in Parliament, Chaguanas West MP Jack Warner questioned whether the million-dollar deal between state-owned Vehicle Management Company of T&T (Vemcott) and a US-based company Saladin Group to supply CNG conversion kits was the reason behind Government’s push for CNG conversion. He questioned which government minister was benefitting from the million-dollar deal.
Cost benefits from CNG
Guardian associate editor Sandra Chouthi said the cost benefits of her CNG-powered Wingroad wagon were incomparable and had enabled her to slash her fuel bill by more than half at the pumps. She had been an advocate for CNG since the “Jurassic era” of the technology 20 years ago and was now on her fourth CNG-powered vehicle. “The cost saving is incomparable. I spent $7 to fill up my tank at the Beetham CNG filling-point. “I spend an average of $10 a day, $300 a month for CNG compared to $1,000 for gas previously.
“I’m pleased because it shows in my bottom line, and if it means I can save a dollar or two I’m happy.” Chouthi said there was no loss in power and navigating hilly roads wasn’t an issue. One of the few drawbacks to using CNG, she said, was the sacrifice in trunk space to hold two CNG tanks. Chouthi said the conversion cost $10,000 and was done by Automotive Components Ltd in Arima, the only authorised CNG installation engineers in Trinidad.
She said the down time waiting to fill up with CNG had improved dramatically from the two-hour wait at gas stations in the past with old malfunctioning pumps, four cars at the pumps, and eight taxis lined up outside. Chouthi said she understood that the culture and mindset of Trinidadians made it reluctant for them to switch to CNG, especially with the “Fast and Furious” crowd.
Hybrid vehicles more expensive
Babwah said hybrid vehicles were “a little more expensive” to import but they burned as much as 60 per cent less fuel than the conventional gasoline-powered vehicles. He said a used Honda Civic hybrid cost around $125,000 and if the motor vehicle tax and VAT were removed, it would cost $100,000. The Toyota Prius hybrid, priced at $135,000, would cost $120,000 with tax exemptions.
A Toyota T&T employee said the Ministry of Energy had purchased a new Toyota Prius hybrid from the company and received tax exemptions on it. He said the price of the Toyota hybrid modes (1.8 cc engine) was $408,000, and the 1.5 cc engine Toyota Prius hybrid C hatchback was $255,000. At this price, he said, it was a bit expensive for the average consumer.
The employee said if the exemptions given to CNG vehicles were applied to hybrid vehicles, the price could drop significantly from $408,000 to $260,000. He said there was almost zero pollution from a hybrid vehicle and depending on driving conditions, a drive between Port-of-Spain and Mayaro would only burn “a corkful of fuel.”
The employee said the Toyota Prius hybrid could achieve an economy rate of 50 miles per gallon compared to a conventional similar sized vehicle typically using 25 to 30 miles per gallon. He said the Prius hybrid saved more than 50 per cent on engine wear, required less maintenance, and the service time was extended for the customer.
Maxi men: Foot our bill for CNG kits
President of the Route Two Maxi Taxi Association Linus Phillip said the association’s position hadn’t changed in its request that the Government foot the bill for their CNG conversion kits. Phillip said, “We’re willing to go CNG once we get a good, reliable product that is properly installed in the vehicle and we feel that the Government should pay for the conversion.
“It would be an incentive for drivers to switch as it would be harder for them to source the $50,000 for the conversion kits as they’re already burdened with heavy instalments and insurance.” He said it would be a good investment for the Government as it would get drivers to convert to CNG faster, and the Government would recoup its money in the first year. Phillip said by his calculation Government spent $90,000 on fuel subsidies for a 24-seater maxi taxi annually.
However, he said, if Government spent $50,000 instead to convert the maxi taxi to CNG, it would be a win-win situation for all parties. He said the CNG maxi taxi conversion had to be evaluated fully to determine whether it could pull a full load of passengers or navigate hilly terrain.