Low Diesel Prices Drive Down Retail Sales of NG Fueled HD Trucks

Thanks to the “power of the pump” — specifically the low price of diesel fuel at the pump — retail sales of natural gas fueled heavy duty trucks is down year to date and year over year. May enjoyed an uptick.

ACT Research, which issued the report, attributes this to a high number of natural gas vehicle repeat sales, as well as purchases by transit bus and refuse truck operators. “However,” the company stated, “the continuing low cost of diesel is making the return on investment for adopting natural gas less lucrative for fleets not yet invested in NG-fueled vehicles.”

“With the fuel price differential continuing to narrow, the ROI to convert from diesel to natural gas is moving in the wrong direction: payback periods remain lengthy,” said Ken Vieth, ACT’s Sr. Partner and General Manager. He continued, “This doesn’t mean the adoption of NG fuel has stopped or that there are no new developments supporting a future uptick in NG truck orders.” Vieth explained,

“Despite a 48% m/m uptick in May, year-to-date volumes are 24% below 2015’s level and year-over-year sales are down 21%. NG infrastructure continues to be built, albeit at targeted locations and at a slowing pace. Existing NG equipment users remain committed to its long-term viability and emission benefits.”

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Category: Fuel and Oil