U.S. Senators call for equal tax treatment of LNG fuel

U.S. Senators call for equal tax treatment of LNG fuelSenator Todd Young (Image courtesy of young.senate.gov)

U.S. Senators Todd Young, Bill Cassidy, and Michael Bennet have reintroduced the Waterway LNG Parity Act.

This bill requires excise taxes on liquefied natural gas (LNG) for marine transportation on inland waterways be levied at a rate consistent with energy output relative to diesel and gasoline.

“The Waterway LNG Parity Act is a market-based fix for how we tax liquefied natural gas,” said Senator Young.

It takes about 1.7 gallons of LNG to provide the same amount of energy as a gallon of diesel, yet fuel usage is taxed on volume. So LNG usage would be taxed 50 cents for the same amount of energy contained in a gallon of diesel fuel that is only taxed at 29 cents.

Natural gas is cleaner and more efficient than gasoline and diesel respectively, yet under the current federal tax code disincentivizes its use. This legislation would change the inland waterways financing rate to provide equal treatment within the federal tax code, the joint statement reads.

“In addition to reducing carbon emissions, natural gas fuel reduces NOx, SOx and particulates compared to diesel. Natural gas costs less and prices are less volatile than diesel due to abundant domestic gas supply. But this safe and clean fuel is currently taxed at a higher rate per unit of energy, which then masks the economic benefits of switching from other dirtier fuels like diesel,” said Tim Hermann, president of Pivotal LNG.

Share this article

Follow LNG World News

Posted on June 13, 2019 with tags .


<< Feb 2020 >>
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1

Flame 2020

Flame is Europe’s largest and most influential meeting place for the global gas industry.

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – London / Mar 2020

This three-day training program provides a unique opportunity to learn and apply the practical skills…

read more >

3rd CWC Japan LNG & Gas Summit

As the only commercially focused forum for the Japanese LNG industry

read more >

Cryogenic Storage Tanks

The program committee looks forward to having the opportunity for intensive, objective and professional…

read more >