Regional Trucking Operator based in Pennsylvania. The tank and dispensing system can be set at no cost to end user with a long-term supply contract. Let’s look at a 20 truck test program.
This fleet cycles trucks every 5 years. Each Truck travels on average 125,000 miles per year. Trucks are getting 6 MPG. Each Truck burns approx. 20,850 gallons of diesel fuel per year.
Average Price of Diesel in PA. $3.459
Delivered in LNG: $1.459* includes a $.50 tax credit for alt fuels*
The incremental cost of a LNG engine is $40,000 more expensive than diesel.
Annual savings of per 1 LNG truck is $41,700. Payback is than 1 year.
Over life of the proposed pilot program, the regional carrier can truck fuel savings are estimated at $208,500 per truck. Therefore, the fuel savings for entire pilot program of 20 trucks is $4,170,000
The price of LNG can be hedged out 5 years, taking all risk of price movements away from company.
In a tight margin business of freight hauling, these savings can truly be a game changer for regional carriers.
- Client Regional Trucking Operator
- Location Pennsylvania
- Number of gallons 20,850 gallons of diesel fuel per year per truck
- Year converted not provided
- Annual savings $41,700