Peru's Ministry of Energy and Mines (Minem) and the Automobile Association of Peru (AAP) recently released new data showing that natural gas
vehicle (NGV) conversions in Peru rebounded by 8.2% quarter-over-quarter to 13,120 vehicles in the third quarter of 2024, reversing a year-over-year decline
in conversions in the first half of the year. This change was primarily due to the expansion of government subsidies for CNG conversions for heavy-duty vehicles
and growing demand for clean energy conversions among motorcycle taxis.
Minem's previously launched "NGV Savings Program" has been expanded from the capital, Lima, to seven regions with natural gas refueling networks, including Ica,
Cusco, and Piura. The program offers interest-free loans of up to 50,000 soles (approximately US$128,000) for CNG conversions of heavy freight vehicles and passenger buses,
with a repayment period extended to five years. An additional 3,000 soles subsidy is also provided for equipment purchases. Data shows that following the policy expansion,
the conversion of heavy-duty vehicles to CNG in Peru surged 42.3% year-on-year in the third quarter. Conversions of freight trucks alone reached 2,150,
accounting for 16.4% of the total conversions during the same period.
Meanwhile, motorcycle taxis, a vital component of Peruvian urban transportation, have become a new growth point for CNG conversions.
To address rising operating costs caused by gasoline price fluctuations,
Minem, in collaboration with local governments,
launched a "Special Subsidy for Motorcycle CNG Conversion": eligible commercial vehicles can receive a 2,000 soles discount coupon for conversions
and a 500 soles three-year interest-free loan to cover the remaining costs. Conversions also provide priority access to the municipal travel dispatch platform.
By the end of September 2024, 4,870 motorcycles in Peru had been converted to CNG, a 29.1% increase from the second quarter.
Orders at conversion service points in cities like Lima and Arequipa doubled year-on-year.
