U.S. Department of Energy | Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Office of Energy Efficiency and Renewable Energy

Natural Gas Tax

Compressed natural gas (CNG) and liquefied natural gas (LNG) dispensed into a motor vehicle is taxed at a rate of $0.15 per gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE), depending on how the dispenser lists the price. A GGE is defined as 5.66 pounds (lbs.) of CNG or 5.37 lbs. of LNG. A DGE is defined as 6.38 lbs. of CNG or 6.06 lbs. of LNG. Exemptions may apply.

(Reference Texas Statutes, Tax Code 162.001, and 162.351-162.356)

Jurisdiction: Texas

Type: Laws and Regulations

Enacted: Jun 1, 2013

Technologies: Natural Gas

See all Texas Laws and Incentives.