3/4 Tank Rule applies to CNG Vehicles effective 1 Jan 2012

December 27th, 2011 admin

In a bid to go GREEN and encourage the purchase of environmental friendly vehicles, the Green Vehicle Rebate (GVR) was originally introduced in 2001 by the Singapore Government and among other things, includes the exemption of excise duties on purchase of CNG, leading to lower fuel prices. This was subsequently reviewed in year 2009 and extended till 2011.

On 27th Dec 2011, it was announced that an excise duty of $0.20 per kg will be imposed on compressed natural gas (CNG) starting 1 Jan 2012. This also meant that drivers of Natural Gas Vehicles (NGV) and petrol-CNG (hybrid) vehicles will have to ensure that their fuel tank is at least 3/4 full when driving across the causeway, to preserve the duties collection from Singapore customs.

The imposition of the 3/4 rule will hit existing NGV owners harder than normal petrol-fueled vehicles (when the 3/4 tank rule was first announced) due to the following:

1. The price differential between CNG price in Singapore and Malaysia is much higher (at least 70% cheaper in Malaysia) than petrol (petrol is about 40% cheaper in Malaysia).

2. Most owners of NGV would have made a conscious decision when making the purchase, and this may include a key assumption that the top up of fuel tank is done in Johor Bahru.

If you are a normal driver of the normal petrol-based vehicles and has frequently travelled with less than 3/4 tank across the causeway, it might be more prudent to “behave” during the early part of 2012 as there may be a stepped up effort by Singapore customs to enforce the new 3/4 tank rule for NGVs, and in the process checking for all vehicle types as well.

Question remains though: In case of suspected meter fraud, how is the authorities at the checkpoints they going to do a “dip stick” test equivalent for NGVs?

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Entry Filed under: News and Information