Philip Ng Malaysia CNG / NGV conversion kit installation Diary

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Tuesday, December 20, 2005

ROI (Return of Investment) calculation and savings

There are few factors to consider when calculating the ROI.
1) Your current vehicle fuel consumption mileage compare to NGV mileage per km.
2) How far do you travel daily? The further you drive the faster the ROI.

At petrol price of RM1.92 per litre as after 28 February 2006. My current mileage for Wira 1.5L aeroback carburetor is about RM0.22 per Kilometer after the petrol increase.

Currently, my NGV mileage is RM0.06 per kilometer for city driving. The NGV mileage will be better if you were to run on highway and can go down to RM0.05 per km.

Price per Kilometer comparision
Petrol RM0.22 / km
NGV RM0.06 / km

Saving of RM0.16 /km that is about 73%

If I were to drove 60km daily for 30 days per month.

Total distance 60 x 30 = 1800km

Total fuel price consume per month:
Petrol RM0.22 x 1800 = RM396
Natural Gas(CNG) RM0.06 x 2100 = RM108

Saving per month is RM288

The installation of NGV conversion kit in malaysia for carburetor :
about RM3000 at most.

How long (month) do I need to drive for actual return of my NGV kit investment?
RM3000 / RM288 = 10.4 months

In about 10.4 months or 18720 km (1800km x 10.4 mth) you will get back your investment .

Investment Point of View
(Which one do you invest? Fixed Deposit or NGV Conversion?)

Imagine if you were to put RM3000 into bank for Fixed Deposit at 3.7% per year, you will only get back RM9.25 per month.

Now you get RM288 of return per month for RM3000 of investment. That is 115.2% per year of interest. Where can you get such bank that offer that much of interest.

If you were to get RM288 per month from bank for Fixed Deposit at 3.7% per year, you have to deposit RM93405.

Why not invest RM3000 for the NGV conversion kits to start your saving unless you have RM93405 in your pocket to earn the interest of RM288 per month.

Remember, the saving will be greater if you were to use your car for highway travelling.

I am saving RM3456 (RM288 x 12) a year for just for normal city driving range. Imagine if you are a sales man and driving outstation a lot. How much do you save?

Furthermore you will also save on the Car Service as the engine oil is cleaner now and also save on the road tax by 25%. Roughly per year I will save more than RM4000

Interesting Facts:
Investing in NGV Conversion Kit is like getting a new Fixed Deposit certificate of amount RM4000 every year , year after year. How would you like it?


Renting a house that does not need buy but you still get rental of RM340 per month from the tenant.

I am just driving a Proton Wira 1.5. If you were to drive a MPV, VAN, Lorry, higher CC car or driving outstation. The amount save will be multiply.


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