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Consider Natural Gas Or Electricity To Save Money On Fuel

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Why Use Natural Gas Or Electricity To Save Money On Fuel?

how to save money on fuelWith gasoline and diesel fuel prices stuck in a range between $3.00 to $5.00 dollars per gallon and concerns that an oil price shock could happen at any time, many drivers and business owners are wondering how to save money on fuel?  While buying a more fuel efficient gasoline or diesel powered vehicle is one way to save money on fuel, a more effective way to save money on fuel is to opt for a vehicle that is powered by either natural gas or electricity.  The upfront cost for natural gas or electricity powered vehicles is greater than gasoline or diesel powered vehicles; however, the operating cost is much less, which can add up to considerable savings over time, especially for drivers that drive a lot of miles or business owners with a fleet of vehicles.

Save Money On Fuel Using Natural Gas Or Electricity | The Facts

Natural gas costs between $1.50 and $2.50 per gallon equivalent, while electricity costs between $0.50 and $1.50 per gallon equivalent, to operate each type of vehicle.  If a driver drives 20,000 miles per year in a car that gets 25 miles to the gallon (MPG), they will consume 800 gallons of gasoline or diesel fuel in a year.  At an average cost of $4.00 per gallon for gasoline or diesel, it costs $3,200 per year to provide fuel for a gasoline or diesel powered vehicle.  Using the mid-point of the operating cost (per gallon equivalent) of natural gas ($2.00) and electricity ($1.00), the operating savings for natural gas or electric vehicles is considerable:  savings of $1,600 per year for natural gas and $2,400 for electricity.  These savings can be even greater for businesses that operate vehicle fleets that log a great amount of miles in a year.

Both natural gas and electricity powered vehicles are emerging technologies, which means that buying them at this time carries some risk since the technology they are based on has not endured all driving and weather conditions.  In the case of natural gas, finding natural gas fueling stations is currently difficult; however, the natural gas industry is working on inexpensive home refueling appliances.  Electric vehicles can be easily charged at a home or place of business.  With the high cost and instability of gasoline and diesel, natural gas and electricity powered vehicles offer a compelling way to save money on vehicle fuel.

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