Used car dealers fear CNG monopoly

Visham Babwah, president of the Used Car Dealers Association.
Visham Babwah, president of the Used Car Dealers Association.

PRESIDENT of the Used Car Dealers Association Visham Babwah believes government is bent on forcing drivers to convert to CNG, while at the same time creating a monopoly for companies which deal with these types of vehicles.

He also said CNG use is fast becoming obsolete as hybrid and electric cars take over and called for additional incentives for the hybrid species, which are also environmentally friendly.

Babwah questioned the removal of fuel subsidy on super gas only by $1, as outlined by Finance Minister Colm Imbert in his budget presentation on Monday, and not on premium and CNG gas. He said if there is to be a removal of fuel subsidy, people must have an option.

He said government’s silence on subsidy for CNG leads to speculation that it is hoping for citizens to switch to CNG and then remove the subsidy, or plan to leave it as it is because of who is involved in this business.

In a statement, Babwah said the budget is a continuation of government’s “merciless quest” to batter citizens with tax increases and fuel-subsidy removal in its three consecutive fiscal packages.

“The Minister of Finance has stated that the government has now mandated all the ministries to purchase and convert 30 per cent of their vehicles to use CNG fuel only,” he pointed out.

Babwah said this is an unfair practice and for transparency, other automotive dealers should have been given a fair option to bid and supply vehicles to the various ministries.

“With the increase in fuel price and no additional incentives with other fuels they are driving the citizens to use CNG only which has proven to be a failure.”

“Additionally, automotive manufacturers have changed their direction to electric and electric hybrid vehicles which means they do not manufacture CNG vehicles and the few models that are currently available are sold by only two local companies. Therefore, it is my opinion that the government is creating a monopoly.”

Babwah said the cost of installing CNG infrastructure is very high and fears after massive investments by taxpayers to develop this type of infrastructure, “it would become like the failed Petrotrin project and will eventually become obsolete.”

He also said based on the profit government is making on the premium fuel, additional incentives should have been given to hybrid and electric cars with bigger engine sizes, as is being done globally.

He said this would be very beneficial to government, which has signed on to the Paris Agreement to reduce carbon emissions, as hybrid and electric vehicles are environmentally friendly.

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"Used car dealers fear CNG monopoly"

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