Natural gas will cost 30 to 40 percent less than diesel fuel, Xu said.
However, the promotion of clean-energy vehicles is not free from problems, with the lack of natural gas stations being the biggest concern.
Unlike electric vehicles, which enjoy many preferential policies, including exemption from the license plate lottery and a price discount, natural gas vehicles are not yet widely accepted, and construction of supporting facilities, like refueling stations, is lagging.
The capital has set up seven compressed natural gas stations and nine liquefied natural gas stations to support the additional natural gas taxis.
Some 100 stations will be set up by the end of the year, and at least 70 more will be built every year from 2017 to 2017 to meet the increasing demand.
Xu said that as the vehicles powered by natural gas become more popular in Beijing, more vehicle manufacturers will get sales permits and come up with more vehicles that use natural gas to meet consumer demand.
The Beijing Gas Group, the operator of the natural gas pipe network in the city, said Beijing - the biggest natural-gas consumer nationwide - had a 15,000-km pipe network by the end of 2017, covering all downtown and 95 percent of suburb areas with a total of 6 million users.
Natural gas accounted for 14 percent of the capital's energy consumption in 2017, an increase from 6 percent in 2010.
The city bought 54 billion cubic meters of natural gas from 1997 to 2017, replacing 84 million tons of coal.
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