IFTA Compliance for CNG-Fueled Vehicles

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If you use compressed natural gas (CNG) in IFTA-licensed vehicles, you know how complicated fuel tax reporting can be. CNG is typically measured as a gas (cubic feet or cubic meters) while diesel and other taxable fuels are measured in gallons or liters. Gas-to-liquid conversion rates vary from jurisdiction to jurisdiction, which makes it a challenge to report CNG appropriately.

Starting in July 2015, IFTA will adopt the IRS conversion factor of 126.67 cubic feet of natural gas to equal a gallon of gasoline. This should make it easier to convert CNG to liquid volumes and report it on the IFTA Tax Return.

There are no conversion issues with LPG since it is almost always sold as a liquid measure or by weight (which can easily be converted to a liquid measure).

Until the standard takes effect, it’s important to report CNG accurately. If you have questions about how to do that, please give us a call.

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