Icelandic government urged to do more for methane

People importing methane powered cars to Iceland are exempt from paying import duties, which might seem like a good thing; but it does not help people eager to convert their existing petrol or diesel cars to also use methane.

Ludvik Ludviksson has recently converted his car so that it can take advantage of cheap and environmentally friendlier methane gas. He criticises the government, however, for not doing anything to help people like him. Ludviksson believes a VAT refund on car conversions would be a good place to start and would encourage more people to try out methane as a transport fuel.

Since the banking crisis, the number of people interested in converting their cars has increased significantly. The conversion costs around ISK 400,000 to 700,000 (USD 3,200-5,600) but the methane fuel costs much less than petrol or diesel. As Iceland produces its own methane but imports all oil products, it is significantly better for the economy and the balance of trade as well.

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