Gagas Energi Indonesia Promotes Gas Fuel Efficiency: Significant Savings for Vehicle Owners

PT Gagas Energi Indonesia, a subsidiary of PT Perusahaan Gas Negara Tbk (PGAS), has revealed that vehicles using Compressed Natural Gas (CNG) can save up to Rp 5,500 per liter compared to the equivalent of RON 90 gasoline.

Muhammad Hardiansyah, CEO of Gagas Energi Indonesia, explained that the price of CNG per liter is Rp 4,500, while the lowest-priced gasoline with RON 90 equivalence, such as Pertalite, costs Rp 10,000 per liter. Therefore, utilizing CNG can lead to savings of up to Rp 5,500 per liter.

"Comparing Rp 4,500 to the cheapest gasoline, which is currently around Rp 10,000, there is a saving of Rp 5,500. For vehicles consuming around 15 liters of gasoline per day, this amounts to savings of Rp 82,500 per day," Hardiansyah told CNBC Indonesia's Energy Corner program on Monday (4/3/2024).

However, Hardiansyah acknowledged that vehicles need a conversion kit installed to utilize CNG as a fuel source. The cost of installing the converter kit ranges up to Rp 25 million.

"The installation cost for a set of converter kit is around Rp 15 million for a CNG storage tank made of steel or Type 1. It goes up to Rp 25 million if the CNG storage tank is made of composite or Type 4, which is lighter," he explained.

Nevertheless, vehicle owners need not worry, as the initial investment for installing the converter kit can be recouped within 10 months due to savings of up to Rp 2.5 million per month on fuel expenses, assuming a daily consumption of 15 liters of fuel.

"Thus, the initial investment of Rp 25,000,000 can be recouped within just 10 months. The converter kit itself, including the tank, has a technical lifespan of up to 20 years," he added.

Gagas Energi Indonesia's initiative aims to promote the use of CNG as an environmentally friendly and cost-effective alternative fuel, offering significant savings for vehicle owners while contributing to a cleaner and more sustainable transportation ecosystem.

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