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Petrol and Diesel prices taking their toll on fleets

19th February 2021

By: Creamer Media Reporter

     

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This article has been supplied.

Traditionally fleet companies have considered fueling a non-negotiable price item when trying to bring down operating expenses. Through NGV Gas, the introduction of Natural Gas has disrupted this tradition and brought significant savings to fleet companies.

InstaToll – made the switch and saved

InstaToll Africa is an infrastructure developer and toll operator in South Africa. The company operates a total of nine (9) SANRAL-owned Toll Plazas. Like many businesses, InstaToll relies on fleet managed infrastructure to fully operate. For this reason, InstaToll has chosen Natural Gas as a vehicle fuel. Since January 2020, the company has run its Nissan NP200 LDV Bakkie on Natural Gas to ensure the business gets the most out of the vehicle at the minimum running cost. 

Here are the advantages by fleet companies like InstaToll running on Natural Gas:

Costs at the pump

Over the years, the price of Petrol and Diesel has proven to be very unstable. The constant fluctuations have made it difficult for businesses to adhere to a fixed fuel budget.

Over and above the inconvenience, historically, the price of Natural Gas has always been lower than the price of Petrol and Diesel, this is because Natural Gas does not have crude oil as a component. Crude Oil determines at least half of the price of each litre of Petrol and Diesel and since oil prices change daily, the prices of Petrol and Diesel are constantly fluctuating too.

Since converting their Nissan NP200 LDV Bakkie to run on Natural Gas, InstaToll has saved between 30-40% on fuel costs.

“Up and above the average savings, there is a tax benefit in terms of the Natural Gas amount vatable compared to petrol which is zero-rated.”

- Refiloe Mohapi, Operations Manager, InstaToll

Lower maintenance costs and efficiency

Compressed Natural Gas is one of the cleanest fuel alternatives available today. It burns cleaner than other fuels and produces less residual dirt, this gives Natural Gas a longer life-span and fewer maintenance checks. This has a direct impact on the cost of running the vehicle.

Natural Gas Vehicles deliver similar horsepower ratings to their diesel and petrol-powered counterparts. In terms of performance, we get the same output from the vehicle/engine as compared to petrol, says Mohapi.  

Environmental benefits

NGVs can have an instant positive impact on the quality of air. They produce 20-30% fewer greenhouse gases than Petrol or Diesel-powered vehicles, notably reducing nitrogen oxide (NOx) emissions. 

“We are happy to be contributing to saving our planet by embracing the go-green initiative”

- InstaToll

When undertaken by a registered Gas Practitioner, converting a vehicle to run on Natural Gas is a relatively easy process that can be completed in a couple of hours.

The expansion of NGVs in South Africa is happening rapidly, NGV Gas is leading the charts through infrastructure development and providing accessibility to the benefits and savings of Natural Gas.  

Edited by Creamer Media Reporter

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