The secret to $2 gas

Friday, October 5, 2012

Gas prices average $3.79 per gallon across the country. What if there were a way to get $2 gas would you seize the opportunity? Well you can, but with one stipulation-it’s natural gas.

Cheap Gas

During the last decade the United States has produced so much natural gas it doesn’t even know what to do with it. Car manufacturers have picked up on this opportunity and started building cars that run on natural gas.

Honda transformed it’s acclaimed civic to run on natural gas obtaining 38 mpg on the highway. While consumers may save money on gas the civic does run at a premium base price of $26,995.

While there aren’t other models of natural gas cars, consumers have taken it upon themselves to modify their existing vehicles to run on natural gas. Popular Mechanics recently ran an article explaining how to convert a vehicle into natural gas. Unfortunately the Clean Air Act rules against modifying fuel systems. Consumers are required to have the systems professionally installed by a certified compressed-natural-gas installer.

Is natural gas worth it?

Consumers can pay as little as $.80-$2.00 per gallon of natural gas. However, natural gas stations are not prevalent and current demand doesn’t justify the payment of $750,000 per installation of station.

Counter to the high cost of installation gas prices are ever increasing. Consumers are forced to pick and choose their battles. Do they want to pay $4/gallon or demand more natural gas stations?

I don’t foresee consumers demanding natural gas anytime soon, but that could change if gas prices hit $6 per gallon.

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