Peru has recently made significant strides in green transportation, with several energy and transportation companies actively introducing compressed natural gas (CNG) vehicles to contribute to the country's sustainable development goals. Concurrently, public transportation in Peru is also transitioning to CNG. CNG buses have a range of up to 350 kilometers and are more environmentally friendly, emitting 30% less CO2 than conventional fuel vehicles, saving 24 tons of CO2 per vehicle annually. In addition to purchasing new CNG vehicles, Peru is also expanding its CNG fleet by retrofitting existing vehicles. According to the Peruvian Automobile Association (AAP), 24,383 natural gas vehicles (NGVs) were converted in the country in the first half of 2024. The Ministry of Energy and Mines (Minem) plans to subsidize the conversion of over 50,000 vehicles to CNG in 2024, with subsidies of up to 4,000 soles per vehicle, and has allocated a budget of 400 million soles for this purpose. Through the Energy for Social Inclusion Fund (FISE)'s GNV Savings Program, vehicle owners can receive a 2,000 soles discount on the conversion cost, with the remaining cost repaid over three years through interest-free financing. Industry insiders believe that with the increasing number of CNG vehicles, Peru will make significant progress in reducing carbon emissions and lowering its dependence on imported oil. In the future, with technological advancements and continued improvements in infrastructure, CNG is expected to play an even more important role in Peru's transportation sector.
