Fuel price stability highlights long-term value of natural gas engines
Low and stable natural gas prices continue to draw attention from fleets and owner-operators looking to reduce operating costs while lowering emissions.
- $4.45 per gallon
- $2.96 per GGE
- $1.99 per GGE
What Happened
Two months into the conflict involving Iran, the national average diesel price reached $4.45 per gallon, up 35% from the previous year, while regular gasoline averaged $4.11 per gallon, a 23% increase. At the same time, data from the U.S. Department of Energy showed compressed natural gas averaged $2.96 per gasoline gallon equivalent. Some public stations advertised even lower prices, including a station in Panama City, Florida, that has listed compressed natural gas at $1.99 per gasoline gallon equivalent since opening in 2018.
Cummins’ X15N natural gas engine has expanded interest among long-haul operators seeking diesel-like performance with lower fuel costs. Fleets using natural gas trucks have reported advantages in total cost of ownership, particularly as diesel prices rise.
“New customers recognizing business models they have looked at before suddenly can drop off a year or two on a payback.”
$2.96per gasoline gallon equivalent
Compared to diesel at $4.45 per gallon, natural gas offers a significant cost advantage.
Why this matters
Natural gas offers a cheaper, more stable fuel alternative to diesel, helping fleets save money and reduce emissions as diesel prices rise.
Terms in This Story
- Compressed natural gas (CNG)
- Natural gas compressed to high pressure for use as a vehicle fuel.
- Renewable natural gas (RNG)
- Biogas captured from landfills, dairy farms, or wastewater plants, upgraded to pipeline quality.
- Gasoline gallon equivalent (GGE)
- The amount of alternative fuel required to equal the energy content of one gallon of gasoline.
- Slow-fill fueling
- A refueling method that uses lower pressure and typically fills vehicle tanks overnight, reducing infrastructure costs.
Summarised from the linked release; details can be imperfect — always verify against the original source.