Posted - 23/06/2006 : 12:03:15 AM
| The section is to assist you to calculate your Returns On Investment (ROI). Alternatively, you can view this part as 'How do I gain financially and non-financially from NGV Conversion?'
There is 2 ways to calculate your ROI on NGV Conversion in Malaysia.
(a) Cash Savings Calculation
This is the simplest calculation method. Upon conversion to NGV, you will be using Cash to pay for CNG gas. The cash savings is about 70% for Proton Iswara, and others (Proton Wira,Waja) about 60%.
If you are using about RM500 on petrol with cash payments, conversion to NGV will saved about RM350. The total cash payment for CNG Gas is about RM150 cash only for about 1,875km.
If you are using about RM500 on petrol with credit card payment, conversion to NGV will saved about RM500 on credit card. The reason is obvious; CNG Gas refilling station does not accept credit card payment. You will not be increasing your credit card debts on fuel cost.
For a gas cylinder of 55 Liter size, your full refill is about RM7.90 in cash for a travelling mileage up to 130km. For estimation purpose, you need to have about RM30 pocket money per day(RM22 for breakfast & lunch, RM8 for CNG gas refill). Thus, each week you probably need about RM210 pocket money, where RM56.00 on NGV for about 700km (or an average of 100km per day).
(b) Opportunity Cost Calculation
The opportunity cost is the value that is forgone in replace with payment for petrol-travelling.
On petrol-only, you could have wasted up RM500 on traffic jams and daily slow travelling. If you uses NGV, you can really save about RM350 as mentioned above. The opportunity cost on using petrol can be as follows ( or you need to forgo the below due to burning away RM350 with petrol-only driving ):
(1) Monthly household groceries
The savings of RM350 per month can benefit you in buying more fruits, a tin of Milo, Nescafe, vegetable, meat, toilet paper or an extra RM87.50 per week for groceries shopping;
(2) Your children's tuition fees, pocket money, school bus fare;
(3) Week-end outings and recreation money with your children to Bandar Utama or Mid Valley or Leisure Mall, etc;
(4) Buying some nice things for yourselves, your wife, your children; or
(5) Monthly savings in the bank account for emergency money.
Often, we, NGV users, are very surprised at the ignorance of most people that laugh or reject NGV. These people are just spending away wasteful money on petrol, such as burning away 1-hour long daily traffic jams and etc. Perhaps, they should have been more aware that they can have extra money to spend on things they like.
The choice is yours to make and to save. drx
NGV Information Team
Edited by - NGVInfo on 23/06/2006 12:13:55 AM