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Monday, January 28, 2008

 

Autogas patrons increasing,
but market growth still slow

 
THE number of vehicles running on liquefied petroleum gas (LPG) across the country has doubled from last year, the Department of Energy said.

Mario C. Marasigan, energy department director, said that more than 8,000 vehicles have already been converted for LPG or autogas use at the beginning of this year from about 4,000 a year ago.

The government is promoting the use of autogas, among other alternative fuels, to lessen the country’s reliance on expensive oil imports.

LPG, which is commonly used as cooking gas, is a relatively cheaper and cleaner alternative to gasoline. The price of autogas per liter costs roughly a third less than gasoline.

All gasoline-fed vehicles and four-stroke motorcycle engines can be converted for autogas use. Conversion cost runs to about P30,000 depending on the vehicle’s model. Once converted, these vehicles can run either on gasoline or LPG.

Marasigan said earlier that the number of autogas units is projected to increase by about 12,000 units in two years but the growth is expected to come mostly from taxi fleets.

But despite the growing number of vehicles running on autogas, industry officials said that the market is not growing fast enough to support its refilling business.

In a separate interview, Emmanuel A. Atienza, AutoLPG Co. Inc. executive vice-president, said that a number of retail stations are already considering closing shop because of low profit margins.

“There are a lot of refilling stations but the market is not growing fast enough,” he added.

He said that this may be because public awareness on the benefits of using autogas has yet to catch up.

Data from the energy department showed that as of October 2007 the total number of autogas refilling stations stood at 86. Of the total, 56 are located in Luzon, 21 in Visayas and 9 in Mindanao. Garage stations for taxi operations numbered 66.

Besides these, there are also 10 to 15 pending applications for the construction of new autogas refilling stations in Metro Manila.

Despite this, AutoLPG Co. will push through with its plan to import 200 LPG buses from China by next month at a cost of about P500 million, Atienza said.

He said that autogas remains a viable alternative fuel in light of the soaring price of oil in the world market, which he said may jack up local gasoline prices to as much as P50 per liter this year.

The company will initially bring in four buses for test runs, and will subsequently increase this number.

Atienza added that AutoLPG Co., which runs eight autogas retail stations in Metro Manila, will add two more stations to accommodate the buses’ refilling needs.
-- Euan Paulo C. Añonuevo

  
 

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