Measurement and Marketing: Considerations when Determining the Method of Sale for CNG/LNG
Juana S. Williams
Establishing an acceptable method of sale is a critical first step in the development of a fair and competitive marketplace for any commodity. For instance, milk could be sold by volume, or it could be sold by weight. If both were allowed, the measurement principles cited above would be violated. That is, a volume of milk purchased at one location could not easily be compared against a weight of milk purchased elsewhere. For this reason, milk is only allowed to be sold by volume. History has shown that when products are introduced into the marketplace without a legally defined standard, confusion and unfair competitive practices can quickly evolve and potentially harm the consumers perception of the product and business reputation of the seller. For example, at one time, precious metals were being sold by the Troy ounce, the Avoirdupois ounce, and the gram. Unscrupulous dealers would buy gold by one unit and sell by another, taking advantage of unaware customers. Although it is a more complicated measurement, the same logic can be applied to the sale of natural gas as a vehicle fuel (Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG)). This article discusses these aspects as it pertains to the Method of Sale for CNG/LNG.
Keywords: compressed natural gas, CNG, liquefied natural gas, LNG, method of sale, measurement, handbook 44, handbook 130