Energy and Mines Ministry to finance over 50,000 vehicle conversions to natural gas in 2023

Statement from the Ministry of Energy and Mines

This is a machine translation of the original statement issued in Spanish

February 1, 2023

The Ministry of Energy and Mines (MINEM) ratified its commitment to the massification of natural gas for vehicular use through the GNV Savings program of the Energy Social Inclusion Fund (FISE) that finances the conversion of private cars and taxis, up to an amount of 4,000 soles, projecting to reach more than 50,000 benefited users in 2023; for which it will allocate a budget of 400 million soles.

Likewise, it indicated that it is finishing preparing the procedure to execute the budget of 200 million soles to finance conversions of LPG vehicles to Vehicular Natural Gas (GNV), which was assigned to MINEM through Emergency Decree No. 109. -2021.

This voucher will allow the delivery of a discount of 2,000 soles on the cost of the vehicle conversion service, with no return charge on the part of the beneficiary; being that the rest of the cost will be financed under the regular scheme of the NGV Savings program, that is, a financing without initial fee or interest and with repayment within a maximum period of 3 years through the NGV refills made by the beneficiary.

The MINEM confirms that conversions to CNG will contribute to increasing the number of vehicles that use natural gas, allowing them to access an energy source that will provide savings of 50% compared to gasoline or diesel.

It is important to mention that, despite the consequences caused by the health and economic crisis that affected the country, FISE has not stopped providing constant support to the population through its different natural gas, electricity and LPG programs.

For this reason, it has been working to promote the mass use of natural gas and has planned, during 2023, the construction of more than 1,416 km of natural gas distribution networks and the connection of 280,478 residential users.

The MINEM renews its commitment to continue with the mass use of natural gas for the benefit of homes, social support institutions, soup kitchens, small businesses and vehicle users, guaranteeing that there are resources to sustain GNV Savings and bring its benefits to more Peruvians.