More natgas vehicles than initially planned?
The government plans to convert 450k cars to run on natgas within three years under its natgas transition plan, Oil Ministry spokesperson Hamdy Abdel Aziz told eXtra News yesterday (watch, runtime 5:13). That includes the 250k figure that was previously announced — which the Trade and Industry Ministry is handling — as well as another 200k the Oil Ministry plans to convert. It remains unclear whether the Oil Ministry’s target is a new addition to the government’s strategy, which aims to convert 1.8 mn cars over the course of a decade — a feat that is expected to cost some EGP 320 bn.
Background: The government delivered earlier this month the first batch of dual-fuel vehicles under the scheme to swap out old, gasoline-fueled cars. The strategy aims to get 70k new natgas cars on the road this year. The Finance Ministry is offering financial incentives for vehicle owners to take part in the scheme, and some EGP 16.2 bn is being made available by the government to provide subsidized loans through local banks. Some 68k people applied to convert their vehicles to run on natural gas as of early April.