Compressed Natural Gas (CNG) Stations and Levy

Mr Christopher de Souza asked the Minister for the Environment and Water Resources (a) how many compressed natural gas (CNG) stations there are at present which are accessible to the public and what plans are there to increase the number; and (b) what are the reasons for the recent duty levied on CNG.

Dr Vivian Balakrishnan: There are four CNG refuelling stations in Singapore. The stations at Mandai, Serangoon North and Toh Tuck are accessible to the public, while Jurong Island is restricted to authorised users.

NEA facilitated the initial development of CNG refuelling infrastructure by the private sector, and co-funded the establishment of three CNG stations.

The Government is currently assessing the feasibility of another CNG refuelling facility in the eastern part of Singapore.

Since the introduction of CNG vehicles in 2002, owners of such vehicles have enjoyed concessions in the form of a Green Vehicle Rebate (GVR). CNG vehicle owners also enjoyed exemption from unit CNG duty until the introduction of CNG duty on 1 January 2012. Advance notice of this was given in 2009. The objective of this temporary exemption was to help build up a critical mass of CNG vehicles. CNG cars will continue to be on the GVR scheme until the expiry of the scheme on 31 December 2012.

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Fuel taxes serve to discourage excessive vehicle usage which contributes to road congestion and pollution. The unit CNG duty of $0.20 per kg is still significantly lower than the $0.41 per litre that is levied on petrol.

A new Carbon Emissions-based Vehicle (CEV) scheme will be implemented in 2013, replacing the GVR scheme. Under the CEV scheme, all car and taxi models will be categorised according to their carbon emissions per kilometre. Low-emission models will be given rebates off their Additional Registration Fee (ARF), while high-emission models will incur a registration surcharge. In between, there is a "neutral" category of car and taxi models which will neither be given a rebate nor incur a surcharge. CNG or bi-fuel CNG models with low carbon emissions will qualify for rebates under the CEV scheme.

The Government is committed to sustainable development and will continue to promote utilisation of appropriate forms of clean vehicular technology.