An article in the New York Times (April 22, 2013) describes the growing use of natural gas in the US trucks, with the industry consuming over 3 million gallons of diesel fuel daily. Natural gas use is estimated to cut costs 30 to 40% per mile, saving $1.50 per gallon currently. But, with natural gas trucks being more expensive, federal taxes (12.5% excise tax) hit harder on these trucks and thus serve as a disincentive. If US exports of natural gas grow, then domestic prices may rise. But retailers and shippers like WalMart and Nike, like the associated carbon footprint of natural gas and thus may drive demand for its use. How should an engine manufacturer like Cummins plan for adoption of natural gas in US trucks ? How should individual transport companies plan their deployment i.e., should it be adjusted to avail of tax credits and subsidies by state to minimize overall costs ? How should investments in natural gas filling stations unfold to make them economically justified and should the state and Federal government lead by committing to its use in their vehicles ?
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Couldn’t we see private hubs for natural gas? If individual companies convert, they don’t need other companies providing their gas at a pump. They just need their own depots. It would be a way to incrementally implement natural gas adoption. The only trick is getting Mack on board since Wal-Mart certainly won’t be building the trucks.