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Number of CNG cars up 10 times

High oil prices drove up car sales last year but demand may dip as pump prices drop.

Thu, Feb 05, 2009
The Straits Times

By Christopher Tan, Senior Correspondent

COMPRESSED natural gas (CNG) vehicle sales had a boom year, as soaring petrol prices in the first half of 2008 pushed more people towards alternatives.

But industry observers said interest may be waning, as pump prices have since softened.

By the end of last year, there were 2,444 cars which can run on CNG, 10 times the population in 2007. Taxis which run on CNG proliferated too, with their numbers rising by more than four times to 977 units.

Think of the potential negative extrernalities of having more CNG vehicles

How should the government react?