Currently, the federal excise tax on LNG and diesel is set at 24.3 cents per gallon. Because it takes 1.7 gallons of LNG to produce the same amount of energy as a gallon of diesel fuel, LNG is taxed 70 percent higher than diesel. Thornberry’s bill would level the playing field by applying the excise tax to LNG and diesel based on the amount of energy each produces, which is how it is applied to CNG and gasoline.
Moreover, Congressman Larson commented: “Companies are already beginning to make the switch towards natural gas vehicles and this bill will knock down a significant barrier preventing companies from further harnessing this domestic energy source. By leveling the playing field for LNG trucks, we are taking an easy step towards utilizing clean, affordable and American energy.”
Source: U.S. Congressman Mac Thornberry