Fact: The spread between diesel price – currently over $4 per gallon – and the diesel gallon equivalent (DGE) of natural gas has ranged between $1.50 and $2.00 in the past several months [see Figure 2]. As the chart to the left indicates, natural gas prices are relatively stable since the discovery of an abundant supply of shale gas in the United States compared to the volatility in diesel prices. This spread will vary depending on a fleet’s purchase power of both diesel and natural gas. UPS is realizing savings of $1.50 per DGE or more on its fleet of nearly 50 LNG tractors, while C.R. England says it is only experiencing savings of $.70 per DGE on its test program of five LNG tractors, but the refrigerated carrier is paying retail for LNG.
Myth #3: The spread between diesel and natural gas isn’t enough to justify switching to natural gas.