Fuel cost savings for commercial fleets

Historically, when compared to diesel, compressed natural gas (CNG) and liquefied natural gas (LNG) customers have saved up to 40 per cent in fuel costs.1

Natural gas vehicles have a higher initial cost, and your payback timing will depend on factors such as vehicle type, fuel consumption and annual mileage. With the fuel savings offered by natural gas vehicles, this can mean a three- to four-year payback, and with our financial incentives this can be reduced even further:

Natural gas rates for transportation are similar to rates for our residential and commercial customers. We buy natural gas on the open market and do not mark up the cost of gas—you pay what we pay. We review rates regularly with the British Columbia Utilities Commission (BCUC) and the BCUC must approve any changes to our rates. 

A typical rate for CNG or LNG refuelling includes:

  • Delivery charge: the charge to deliver natural gas through our system.
  • Commodity charge: the cost per gigajoule of natural gas you use. (One gigajoule is equivalent to 25.9 litres of diesel.2)
  • Basic charge: a fixed, flat daily fee that partially recovers the fixed cost of our system and service.
  • Fuelling charge: a fueling rate that factors in the capital cost of the station, operation and maintenance and overhead costs. This rate is determined by using a regulated cost of service model.

BC Carbon tax

Like gasoline or diesel, natural gas for transportation is subject to the BC carbon tax. But since natural gas is a lower carbon fuel, it is taxed at a lower rate.

The current carbon tax rate is $40/tonne, which must be translated based on the type of fuel used:3

1Fuel costs based on FortisBC rates as of March 2018, and average cost of diesel per litre in BC as of March 2018.
2Based on an assumption of $0.75/diesel litre equivalent for natural gas and a diesel price of $1.20/litre.
3Rate current as of April 2019. See British Columbia’s Carbon Tax – note, as of April 2019, this page contains April 2018 rates.