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Contents
Contents
Executive summary
Introduction
6
10
10
10
11
11
12
13
1.2
1.2
1.2.1
1.2.2
1.2.3
Market trends
Drivers of Autogas use
Alternative automotive-fuel policies
Practical considerations
Cost factors
13
15
15
16
18
20
2.1
2.2
2.2.1
2.2.2
2.2.3
2.3
20
21
21
22
23
24
26
3.1
3.2
3.2.1
3.2.2
3.2.3
26
27
27
28
29
30
4.1
4.1.1
4.1.2
4.2
4.3
30
30
32
35
36
5.1
5.2
5.3
44
45
6.1
6.2
6.3
45
46
47
5.4
6
39
49
Algeria
50
1.1
1.2
1.3
50
50
52
Contents
Australia
53
2.1
2.2
2.3
Belgium
53
54
55
57
3.1
3.2
3.3
Canada
57
57
58
60
4.1
4.2
4.3
China
60
60
62
63
5.1
5.2
5.3
France
63
63
64
66
6.1
6.2
6.3
Germany
66
66
68
70
7.1
7.2
7.3
India
70
70
72
73
8.1
8.2
8.3
Italy
73
73
75
76
9.1
9.2
9.3
Japan
76
77
78
79
10.1
10.2
10.3
Korea
79
79
81
82
11.1
11.2
11.3
Mexico
82
83
84
86
12.1
12.2
12.3
Netherlands
86
87
87
89
13.1
13.2
13.3
Poland
89
90
90
92
14.1
14.2
14.3
Russia
92
93
94
95
15.1
15.2
15.3
Thailand
95
95
96
98
16.1
16.2
98
98
10
11
12
13
14
15
16
Contents
16.3
Turkey
101
17.1
17.2
17.3
United Kingdom
101
102
103
105
18.1
18.2
18.3
United States
105
105
107
109
19.1
19.2
19.2.1
19.2.2
19.2.3
19.3
109
110
110
111
113
113
17
18
19
99
115
117
118
Executive Summary
Executive summary
Autogas LP Gas used as a transport fuel is by far the most widely used and
accepted alternative automotive fuel in use in the world today. Global
consumption of Autogas has been rising rapidly in recent years, reaching
22.9 million tonnes in 2010 8.5 Mt, or 59%, up on 2000 levels. There are
now well over 17 million Autogas vehicles in use around the world. Yet
Autogas use is still concentrated in a small number of countries: five
countries Korea, Turkey, Russia, Poland and Italy together accounted for
more than half of global Autogas consumption in 2010. The 19 countries
surveyed in this report accounted for 84%. The share of Autogas in total
automotive-fuel consumption varies widely among those countries, ranging
from a mere 0.1% in the United States to 18% in Turkey. The only countries
other than Turkey where Autogas makes up more than 10% of the
automotive-fuel market are Korea and Poland. The enormous disparity in the
success of Autogas in competing against the conventional automotive fuels,
gasoline and diesel, is explained mainly by differences in government
incentive policies.
The primary reason why governments in many countries actively encourage
the use of Autogas and other alternative fuels is the environment. Autogas
out-performs gasoline and diesel as well as some other alternative fuels in
the majority of studies comparing environmental performance that have
been conducted around the world. Autogas emissions are especially low with
respect to noxious pollutants. With respect to greenhouse-gas emissions,
Autogas performs better than gasoline and, according to some studies, outperforms diesel, when emissions are measured on a full fuel-cycle basis and
when the LP Gas is sourced mainly from natural gas processing plants. Even
so, the strength of actual policies and measures deployed does not always
fully reflect the true environmental benefits of switching to Autogas from
conventional automotive fuels. Some countries promote Autogas for
economic reasons too, notably to provide an outlet for surplus indigenous
production of LP Gas.
The most effective Autogas incentive policies are those that help to make the
fuel more competitive against gasoline and diesel and give a strong financial
incentive for an end user to switch to Autogas. In practice, the financial
attractiveness of Autogas over other fuels depends on the net cost of
converting an existing gasoline vehicle (or the cost of a factory-built Autogas
vehicle compared with an equivalent gasoline or diesel vehicle) and the pump
price of Autogas relative to diesel and gasoline. Since converting a vehicle to
run on Autogas involves upfront capital expenditure and some minor
inconvenience (including sacrificing some boot/trunk space), the owner
needs to be compensated through lower running costs, of which fuel is the
most important. The time it takes for the savings in running costs to offset
the capital cost the payback period depends on the usage of the vehicle,
i.e. the average distance travelled monthly or annually. The payback period
WORLD LP GAS ASSOCIATION
Executive Summary
Executive Summary
Non-financial policies and measures: In some cases, the use of nonfinancial incentives or other measures have helped either to boost or to
hinder Autogas use. Public awareness and education campaigns to
promote Autogas have certainly made a significant contribution to
market growth in several countries. Mandates and public transport fleet
conversion programmes have also been very successful in several
countries, including China. By contrast, traffic or parking restrictions
discourage Autogas use in some countries.
Executive Summary
Introduction
Introduction
Objectives of the study
Sales of Autogas the most widely used alternative to conventional
automotive fuels are growing quickly in many countries, thanks to its
inherent environmental, practical and cost advantages over other alternative
fuels and government policies to encourage its availability and use. But in
some countries, Autogas-market development is being held back by
ineffective or poorly-designed policies, such as unfavourable tax rates and
regulations that fail to account fully for the social benefits of switching to
Autogas.
This study seeks to explain why governments encourage switching to
Autogas and how they go about doing so based on an in-depth survey of the
worlds largest Autogas markets. It assesses what types of policies are most
effective and why.
10
Introduction
Section 6 assesses the implications of this analysis and the lessons that
can be drawn for policymaking.
Part B presents the detailed results of the survey and analysis of Autogas
competitiveness by country. Summary tables, references and a note on data
sources are included in the annexes.
Acknowledgements
This report was prepared by Trevor Morgan and Ugur Ocal of Menecon
Consulting. David Tyler, Director of Projects and Business Practices, at the
World LP Gas Association, was responsible for co-ordinating the project.
11
12
Market trends
13
Country
4 450
2 490
2 300
1 660
1 227
1 202
1 147
922
909
837
5 723
22 866
Korea
Turkey
Russia
Poland
Italy
Japan
Australia
Thailand
China
Mexico
Rest of the World
World
Vehicles
(thousands)
2 300
2 394
1 282
2 325
1 700
288
655
473
143
535
5 379
17 473
Refuelling sites
1 611
8 700
2 000
5 900
2 773
1 900
3 200
561
310
2 100
28 094
57 150
* The data shows a large increase in consumption in 2010, which is thought to be due to a recategorisation of LP Gas demand in the residential sector.
Source: WLPGA (2011).
14
markets Korea and Japan taxis and other light-duty fleet vehicles account
for a large share of Autogas consumption. In both countries, the
overwhelming majority of taxis run on Autogas as a result of a combination
of incentives and government mandates requiring the use of alternative
fuels. In Europe, private cars comprise the main market. In most countries,
vehicles that run on Autogas are gasoline-powered vehicles that have been
converted to use either Autogas or gasoline. Gasoline vehicles can usually be
converted at moderate cost (see section 1.2.2). Korea, where most vehicles
are Original Equipment Manufactured (OEM) vehicles, is the main exception.
At present, there are relatively few heavy-duty vehicles that run on Autogas,
since costly alterations to the diesel engine are needed. In recent years,
however, a number of heavy-duty LP Gas engines (mostly adaptations of
their diesel counterparts), have been commercialised by several of the larger
engine manufacturers. These engines are used mainly in buses and mid-sized
trucks, mainly in the United States, Korea and China. Conversion technology
is less advanced for diesel vehicles than for gasoline vehicles and diesel
conversions are rarely competitive.
1.2
1.2.1
The oil-price shocks of the 1970s provided the initial impetus for the
development of alternative automotive fuels, as countries sought to reduce
their dependence on imports of crude oil and refined products.
Environmental concerns have since overtaken energy security as the
principal driver of government policies to promote such fuels, as they are
generally less polluting.
The initial focus of policy action was air pollution in major cities, which is
caused mainly by automotive fuels. Since the 1990s, attention has shifted to
the threat of global climate change due to rising concentrations of
greenhouse gases in the atmosphere resulting primarily from the burning of
fossil fuels. As a result, governments are looking to fuels that emit less
carbon dioxide (CO2), methane (CH4) and N2O the main energy-related
greenhouse gases.
Research and development of alternative automotive-fuel technology in
recent years has focused on fuels based on oil and natural gas, biofuels
derived from vegetable matter such as ethanol or bio-diesel, electric vehicles
and hydrogen-based fuel cells. Electric vehicles are approaching the
commercialisation stage, but their uptake is likely to be slow due to their high
cost and limited mileage. The supply of ethanol and bio-diesel has risen
15
sharply in recent years, but both fuels are usually blended with conventional
gasoline and diesel for sale to end users. The scope for further increases in
biofuel production using conventional technology will be limited by
competition for land to grow food crops.
The main non-blended alternative fuels in use in the world today are Autogas
(LP Gas), compressed natural gas (CNG) and methanol. Autogas has
established itself in many countries as by far the most important of these
fuels, because of its favourable mix of inherent practical and cost advantages
and environmental benefits. Air-borne emissions of regulated and
unregulated toxic gases from Autogas use are among the lowest of all the
automotive fuels commercially available today. In addition, greenhouse-gas
emissions from Autogas are generally lower than those from gasoline, diesel
and some alternative fuels. The comparative environmental performance of
Autogas is discussed in more detail in the next section.
From an energy-security perspective, Autogas has advantages over
conventional fuels. There is an abundant supply of LP Gas from many sources
around the world. In addition to proven reserves in oil and gas fields, the
flexibility of modern refining processes offers considerable potential for
expanding supply to meet demand from the transport sector. LP Gas supply
is expected to rise briskly in the next few years with growing natural gas
production and associated liquids extraction already the primary source of
LP Gas worldwide. And field and refinery supplies will also increase as
wasteful flaring and venting practices, which are still common in many parts
of the world, are eradicated. In addition, there is considerable scope for
diverting supplies from relatively low-value petrochemical uses, where LP
Gas can easily be replaced by other feedstock such as naphtha, ethane and
distillate.
Autogas use has generally responded much better to government policies to
promote alternative fuels than CNG, methanol or electric vehicles. Despite
some environmental advantages over conventional fuels, the development
of CNG has been slow because of cost and practical considerations
associated with the fuelling infrastructure. Methanol also has appealing
environmental attributes, especially if produced from renewable biomass,
but its use as a motor fuel remains limited in most parts of the world, largely
because of technical problems associated with its corrosiveness. In contrast,
the technology for installing Autogas systems in vehicles or converting
existing conventional-fuel vehicles is proven, greatly reducing the financial
risks to investors. The costs of establishing the distribution infrastructure and
converting vehicles to run on Autogas are generally much less than for other
alternative fuels.
1.2.2
Practical considerations
16
technical reasons, most light-duty vehicle conversions involve gasolinepowered engines, which are particularly well-suited to run on Autogas.
Specialist companies, using standardised kits involving a parallel fuel system
and tank, typically carry out conversions. The tank is usually installed in the
boot/trunk. Some large, multinational OEM vehicle manufacturers have
become involved in the development, design and manufacture of Autogas
systems. Several OEMs are now producing and marketing dedicated Autogas
vehicles with under-floor fuel tanks. For example, Ford and General Motors
market an extensive range of Autogas cars in Australia, as does Hyundai/Kia
in Korea .
The performance and operational characteristics of Autogas vehicles
compare favourably with other fuels. Autogas has a higher octane rating
than gasoline, so converted gasoline-powered spark-ignition engines tend to
run more smoothly. This reduces engine wear and maintenance
requirements, including less frequent spark plug and oil changes. Autogas
causes less soot formation than both gasoline and diesel, reducing abrasion
and chemical degradation of the engine oil. In addition, Autogas does not
dilute the lubricating film on the cylinder wall, which is a particular problem
with gasoline engines in cold starts. The higher octane of Autogas also allows
higher compression ratios, which can deliver increased engine-power output
and better thermal efficiency, reducing fuel consumption and emissions.
Acceleration and top speed using the latest generation of Autogas-fuel
systems are comparable to gasoline or diesel. Autogas has a lower energy
density than gasoline and diesel. Although this has no effect on engine
performance, it does mean that a larger volume of fuel and a bigger tank are
required to achieve the same overall driving range.
In practice, however, converting a vehicle to be able to run on Autogas
involves some operational inconveniences. The most important of these are
the loss of boot/trunk space to accommodate the fuel tank and, in some
cases (depending on the equipment installed), the marginal loss in
acceleration and speed mainly due to the extra weight of the tank. This is
more of a problem for CNG vehicles. The development of new technologies,
including ring-tanks and lightweight composite tanks, has helped to alleviate
these problems. This inconvenience is offset to some extent by the lower
weight of Autogas fuel compared to gasoline and the increased flexibility
provided by the dual-fuel capability of converted vehicles. The refuelling
process can also be a little trickier than for gasoline and diesel depending on
pump facilities, which can be off-putting for some motorists. Nonetheless,
practical experience has shown that vehicle owners are often willing to
convert their vehicles to Autogas if the savings in running costs are
sufficiently attractive.
Safety concerns with regard to the handling and on-board storage of
Autogas are a barrier to conversion in some cases. Yet many years of
operation worldwide have amply demonstrated the integrity and safety of
bulk LP Gas/Autogas transportation and storage containment systems, as
well as on-board vehicle tanks. In fact, the safety record of Autogas use in
practice is at least as good as, if not better than, gasoline or diesel. A good
17
example is Hong Kong, where the Autogas taxi fleet has accumulated over 20
billion kilometres since 1990 without a single major accident. Autogas is fully
contained under pressure in solid tanks, which limits the danger of leakage.
Being stored in liquid form, gasoline is prone to leaks or vapour escapes.
Nonetheless, widely-publicised accidents, often resulting from poor
installation, the absence of a safety valve on the fuel-tank or the illegal use or
cylinder gas, have undermined the safety image of Autogas in a few
countries.
1.2.3
Cost factors
The cost of Autogas supply and infrastructure is generally lower than for
other non-blended alternative fuels. On an energy-content basis, the cost of
bulk LP Gas delivered to service stations is roughly comparable to gasoline
(Section 4.1.2). Rising demand for Autogas is not expected to raise
significantly the cost of LP Gas on the international spot market relative to
gasoline given the abundance of supplies.
The costs incurred in establishing or expanding an Autogas distribution
network essentially relate to investments in service-station storage and
dispensing facilities. The plants and equipment that already exist to handle
the importation, production, storage and bulk distribution of LP Gas for
traditional uses are exactly the same as for Autogas, although some
additional investment may be needed to cope with higher bulk throughput.
Since Autogas generally makes use of the existing service-station
infrastructure for distribution of conventional fuels, additional costs for
Autogas dispensing are low relative to some other alternative fuels. For
example, the cost of installing a standard tank, pump and metering
equipment for Autogas alongside existing gasoline and diesel facilities is
typically around a third that of installing dispensing facilities for CNG with
the same capacity. This is because of the added cost of dedicated supply
pipelines, high-pressure compression, storage cylinders and special
dispensers for CNG. In addition, the fuelling rate for CNG is much lower than
for Autogas and often noisier.
Vehicle-conversion costs vary considerably from one country to another,
depending on the sophistication and quality of the equipment installed and
local labour costs. Conversion costs for older cars with less sophisticated
engines tend to be much lower. On average, the cost of conversions and the
cost installation of dual-fuel systems in OEM vehicles has risen in recent
years as fuel-injection engine technology has become more sophisticated,
Worldwide, costs vary from about $500 in developing countries to $3 500 in
the United States. The premium for an OEM vehicle is typically at least
$1 000 for a light-duty vehicle.
Despite the favourable environmental attributes of Autogas compared to
other alternative fuels, the rate of switching to Autogas and overall
consumption is highly dependent on the financial benefits to end users. A
publicly-owned bus company may take account of the local environmental
benefits as well as relative costs of different fuel options in deciding whether
18
to switch to Autogas. But for most private fleet operators, truckers and
individual motorists, the sole factor is cost. As a result, private vehicle owners
must be given an adequate financial incentive to switch to Autogas.
19
Comparative environmental
performance1
2.1
This chapter draws on the findings of the WLPGA report, LP Gas: Healthy Energy for
a Changing World (WLPGA, 2009).
WORLD LP GAS ASSOCIATION
20
Autogas out-performs gasoline and diesel and most alternative fuels in the
majority of studies comparing the environmental performance of
conventional and alternative fuels that have been conducted around the
world in recent years. Autogas emissions are especially low with respect to
noxious pollutants. With regard to greenhouse-gas emissions, Autogas
performs better than gasoline and, according to some studies, out-performs
diesel, when emissions are measured on a full fuel-cycle, or well-to-wheels,
basis and when the LP Gas is sourced mainly from natural gas processing
plants (see below).
The results of these studies vary to some degree, according to the types of
vehicles selected, the quality of the fuel, the types of emissions measured
and the conditions under which they were carried out vary: actual vehicle
emissions are highly dependent on vehicle technology and driving behaviour.
The rest of this section summarises the results of the main studies for lightduty and heavy-duty vehicles.
2.2
2.2.1
21
Note: Euro-5 results are based on vehicles equipped with diesel particulate filters; NOx emissions
for Euro-5 vehicles were adjusted to reflect current vehicle tehnology. Average emissions of the
other pollutants were already low for Euro-3 vehicles, so were not adjusted.
Source: WLPGA (2009).
PM emissions are negligible for both Autogas and gasoline vehicles, but
remain a major problem for diesel vehicles, especially those built to Euro-3 or
earlier standards. Despite recent advances in filter technology, auto gas PM
emissions are lower than for Euro-5 compliant diesel cars. Although Autogas
performs less well than diesel and gasoline with respect to CO emissions, and
less well on HC emissions with respect to diesel, the differences on a full fuelcycle, or well-to-wheel, basis do not influence significantly the overall
comparison of the environmental impact of the different fuels.
2.2.2
22
2.2.3
Greenhouse-gas emissions
Greenhouse-gas emissions for any given fuel are almost directly proportional
to the amount of fuel consumed. Thus the main factors affecting emissions
are the energy and carbon content of the fuel. Autogas has an intrinsic
advantage over gasoline and diesel with respect to CO2 emissions the main
greenhouse gas because of its lower carbon content, although this is largely
offset by the higher fuel consumption of Autogas vehicles vis--vis diesel
vehicles.
Several studies compare emissions of CO2 and other greenhouse gases from
different fuels and vehicles over the full life cycle, including emissions
incurred during the production and supply of the fuel. In general, these
studies show that Autogas yields lower emissions compared with gasoline
and similar emissions to diesel. Results vary somewhat among the various
studies that have been conducted, partly because of differences in
assumptions about the source of LP Gas: emissions from LP Gas production
from natural gas processing plants are considerably lower than from
refineries. Results for CO2 emissions from the 2004 EETP study are shown in
Figure A2.2. Autogas emissions are lower than diesel and gasoline in the
Artemis driving cycle (CADC), which simulates actual driving conditions, but
are marginally higher than diesel in the standard European driving cycle.
23
Figure A2.2: CO2 emissions from LDVs by fuel on a well-to-wheels basis (g/km)
Note: EDC = European driving cycle; CADC = Artmis cycle, which simulates actual driving
conditions.
Source: WLPGA/Menecon Consulting (2005).
2.3
Almost all heavy-duty vehicles (HDVs) in use today around the world are
diesel-fuelled. The main environmental advantage of Autogas over diesel for
HDVs relates to emissions of PM, which are much lower for Autogas, and
NOx especially for older vehicles.
Although a considerable body of test data exists for heavy-duty vehicle
engines, many different test cycles have been used, with different speed
profiles and energy content, which make comparisons extremely difficult. A
2009 WLPGA report compiled data on emissions drawing on the results of
comprehensive series of test programmes commissioned by the Australian
government and carried out over the period 2000-2005. These tests involved
almost 900 vehicles, including a number of Autogas-fuelled HDVs. Data from
this testing and from other sources was distilled into a comprehensive set of
speed-related on-road emission factors (in g/km) by the Queensland state
government for all regulated pollutants. As for LDVs, the data was adjusted
to take account of Euro-5 standards.
The results shows that Autogas beats diesel on all the regulated emissions
except HC (Figure A2.3). In the case of PM, the difference is particularly
marked for Euro-3 vehicles. The filters that are required to meet Euro-5
standards greatly reduce PM emissions from diesel-fuelled HDVs.
24
Note: Euro-5 results are based on vehicles equipped with diesel particulate filters; NO x emissions
for Euro-5 vehicles were adjusted to reflect current vechile tehnology. Average emissions of the
other pollutants were already low for Euro-3 vehicles, so were not adjusted.
Source: WLPGA (2009).
25
26
number of users. Financial incentives have, thus, generally focused on fuelbased taxes, as they are simpler and politically less sensitive than measures
that impact vehicle use directly, such as road pricing even though evidence
suggests that pricing vehicle use can be very effective. The earliest
widespread experience of differential taxation to support environmental
goals was the introduction of unleaded gasoline, where lower taxes relative
to leaded fuel were extremely effective in accelerating its uptake. More
recently, similar incentives have been focused on encouraging the use of lowsulphur diesel and alternative fuels. The case for lower fuel taxes for to
achieve environmental objectives is well established, though they may have
to be significantly lower and their introduction needs to be well-timed to be
effective (ECMT, 2001). In principle, economic efficiency demands that the
excise taxes levied on any given fuel should be applied at the same rate to all
users, commercial and non-commercial.
Most governments deploy other complementary approaches that target
vehicle use and modal choices rather than just the prices of transport fuels, as
such broader approaches tend to be more effective in practice in reducing
emissions especially of greenhouse gases from road vehicles (OECD,
2003). Such approaches seek to internalise implicitly the external
environmental costs of road transportation. They may be aimed specifically
at encouraging the use of clean fuels, including Autogas and other alternative
fuels, or discouraging the use of more polluting fuels.
3.2
3.2.1
Financial incentives
27
Table A3.1: Typology of government policies and measures to promote alternative fuels
Fiscal/financial
Regulatory
Other
Mandatory sales/purchase
requirements for public and/or private
fleets (with enforcement)
Road/registration-tax exemption or
rebate
Vehicle sales-tax exemption or
income/profit tax credit (purchasers
and OEMs)
The main way of providing incentives for AFV themselves is to subsidise the
higher cost of buying an OEM vehicle or the cost of converting an existing
conventional fuel vehicle. Subsidies are most easily provided through grants
or tax credits. Eligibility can be made dependent on the emission
performance of the vehicle being converted. Governments can also
encourage AFV purchases or conversions directly through partial or complete
sales or consumption-tax exemptions. Favourable rates or exemptions from
vehicle registration and/or annual road taxes are another approach. Such
incentives may be restricted to a pre-determined number of years to limit the
loss of tax revenue and the free-rider problem (where the financial benefit to
some end users from the tax incentive is greater than is necessary for them
to switch to using an alternative fuel).
The measures cited above are demand-side fiscal incentive measures aimed
directly at reducing the cost to the end user of switching to an alternative
fuel. Supply-side fiscal measures that reduce the tax liability of fuel providers
and/or AFV manufacturers can also help to lower these costs in an indirect
way. For example, profit-tax credits can be used to encourage OEMs to
develop and market dedicated AFVs, or to encourage fuel providers to invest
in distribution infrastructure.
3.2.2
28
The most direct form of regulatory measure involves the use of legal
mandates on public or private organisations to sell or purchase a fixed
number of AFVs. Traffic-control regulations can be also be used to favour
such vehicles. For example, AFVs may be granted enjoy exemptions from city
or highway-driving restrictions, such as those imposed on peak-pollution
days. They may also be exempt from on-street parking charges and roadpricing schemes. Government can also facilitate the development of
coherent standards, in partnership with industry, covering vehicle
conversions, refuelling facilities and health and safety aspects of alternative
fuel supply and use.
3.2.3
Other measures
29
4.1.1
Rates of excise taxes and duties on road-transport fuels vary markedly across
countries, both in nominal terms and relative to each other. In no country
among those surveyed in this report is the same rate of excise duty applied
uniformly across all fuels either on a mass or volume basis. Rates of valueadded tax (VAT) or sales taxes also vary substantially, ranging from 5% in
Japan and some US states to 22% in Poland. And the rules governing the
recovery of VAT, consumption and sales tax by commercial users also vary. In
practice, the absolute level of tax on Autogas matters less than the how high
it is in absolute terms relative to conventional fuels.
Figure A4.1: Autogas excise taxes as % of taxes on gasoline per litre, 2010
On a per-litre basis, Autogas taxes are usually lower than for both diesel and
gasoline, but the extent of the tax advantage varies significantly. Autogas is
totally exempt from excise taxes in Australia, Belgium, China, India, Russia
and Mexico (Figure A4.1). The ratio of Autogas taxes to gasoline taxes is
highest in the United States and Algeria (though this is compensated by
government controls on wholesale and retail prices, which keep Autogas
30
pump prices low). In all countries except the United States, excise taxes on
Autogas are less than 50% of those on gasoline on a per-litre basis. The
arithmetic average ratio across all the countries surveyed is 18%.
Excise taxes on diesel are lower than on gasoline in all countries except the
United Kingdom, where they are the same, and the United States. As a
result, Autogas generally enjoys a smaller tax advantage over diesel than
gasoline. The ratio of excise-tax rates on Autogas to diesel is highest in
Algeria at over 170%. In fact, Algeria is the only country where Autogas is
taxed more than diesel (Figure A4.2). Autogas taxes as a proportion of diesel
taxes average 29% for all 19 countries.
Figure A4.2: Autogas excise taxes as % of taxes on diesel per litre, 2010
Because the calorific value of each fuel varies, the tax advantage of Autogas
is in reality smaller especially over diesel, which has the highest calorific
value per litre. If all three fuels were taxed equally on an energy-content
basis, taxes per litre would on average be 28% higher for gasoline and 40%
higher for diesel compared with Autogas.
There is no environmental justification for taxing diesel less than gasoline
even less Autogas either on a volume or energy-content basis (see Section
A3). The favourable treatment given to diesel vis--vis gasoline reflects
lobbying by road hauliers and industry generally to minimise commercial fuel
costs, especially in countries where trucks can easily refuel in a neighbouring
country where duties and therefore pump prices are lower. Many European
countries come into this category. It is impractical as well as economically
inefficient to levy different rates of duty on different categories of end users.
No country currently reimburses excise duties on diesel to commercial users.
WORLD LP GAS ASSOCIATION
31
Most governments have traditionally used fuel taxes to raise money for the
exchequer. Nonetheless, there are limits to how much governments can tax
conventional fuels. In recent years, several European governments have been
forced to abandon planned increases in fuel duties in the face of strong public
protests at higher gasoline prices, caused by rising international market
prices.
4.1.2
Retail or pump prices of Autogas also vary considerably across the countries
surveyed both in absolute terms and relative to the prices of other fuels. This
is largely because of differences in the way automotive fuels are taxed. But
differences in the bulk price (import, ex-refinery or ex-processing plant) of LP
Gas and the distribution and retail mark-up (including costs and profit
margins) also contribute to price differences at the pump. Margins differ
among countries and regions according to the degree of competition
between distributors and, in some cases, government margin or price
controls. Autogas prices are controlled in Algeria, China, India, Mexico and
Thailand. In all the other countries surveyed, the government is no longer
directly involved in setting wholesale or retail prices.
In 2010, pre-tax pump prices converted to US dollars were on average lowest
in Algeria and highest in Turkey (Figure A4.3). Autogas prices were lower
than for both diesel and gasoline in all countries except France and the
United States. Pre-tax prices change over time in line with fluctuations in
international-market prices (Box A4.1).
32
Note: Prices are converted to US dollars at average 2010 exchange rates. Pre-tax prices are not
available for India and Russia.
33
Figure A4.4: Autogas pump price including all taxes as % of gasoline price per litre, 2010
Figure A4.5: Autogas pump price including all taxes as % of diesel price per litre, 2010
34
Diesel
Gasoline
Diesel
Gasoline
59.1%
31.5%
54.7%
65.7%
38.8%
Australia
9.1%
36.9%
39.7%
46.0%
46.7%
Belgium
17.4%
49.5%
59.5%
49.0%
40.5%
Canada
14.2%
26.9%
33.3%
67.1%
66.1%
China
11.5%
26.7%
29.5%
60.8%
59.9%
France
24.5%
53.8%
61.5%
64.2%
54.7%
Germany
26.1%
54.3%
62.2%
59.9%
51.9%
India
n.a
n.a.
n.a.
80.4%
62.9%
Italy
35.6%
51.5%
58.0%
54.4%
48.5%
Japan
16.5%
33.7%
46.8%
73.8%
62.6%
Korea
32.3%
43.6%
52.7%
63.4%
55.7%
Mexico
29.0%
13.8%
13.8%
30.2%
26.3%
Netherlands
29.4%
52.6%
64.1%
55.1%
42.9%
Poland
38.6%
48.1%
54.5%
52.1%
48.7%
Russia
n.a
n.a.
n.a.
96.7%
84.0%
Thailand
23.3%
32.6%
49.3%
39.5%
27.1%
Turkey
36.6%
45.8%
55.3%
79.7%
66.2%
United Kingdom
40.7%
62.8%
63.8%
54.3%
55.3%
United States
15.2%
17.5%
16.9%
97.2%
100.1%
Average
27.0%
40.1%
48.0%
62.6%
54.7%
Note: Percentages are calculated on a volume basis. n.a. is not available. Averages are
unweighted.
Effective pump prices can also differ between commercial and noncommercial. In most countries, commercial (business) users are able to
recover VAT but usually not excise duties. In most cases, the rules governing
VAT refunds are the same for all fuels and all types of vehicles. Where this is
the case, the relative competitiveness of the different fuels is not affected,
although the absolute savings on running costs from switching to cheaper
fuel/vehicle options differ between commercial and non-commercial users.
4.2
35
fuel-conservation tax for AFVs in Ontario ended in July 2010 when federal
and provincial sales taxes were harmonized. In 2011, the French government
stopped its subsidy scheme, while Italy reintroduced a scheme it has
scrapped in 2010. The Korean government makes available diesel-engine
conversion grants (and the Japanese government too until March 2012), but
there has been little interest in taking up these grants because of the high
cost of diesel conversions.
Discounts on annual road taxes and initial vehicle registration taxes
compared to those levied on gasoline or diesel vehicles are less common. In
2010, France and Canada (Ontario) used this approach. In the Netherlands,
annual road tax is much higher for diesel vehicles than for Autogas or
gasoline vehicles. In 2011, Algeria introduced an exemption from the annual
road tax for Autogas vehicles.
4.3
Other incentives
36
Vehicle tax
exemption or
rebate2
Algeria
Grants/tax credits
for conversions or
OEM purchases3
Autogas fleet
vehicle purchase
mandates3
Australia
Belgium
Canada
France
Germany
India
Italy
Japan
China
7
Korea
Mexico
Netherlands
Poland
Russia
Thailand
Turkey
United Kingdom
10
United States
Excise duty less than half that levied on diesel and gasoline, calculated on a per-litre equivalent
basis. 2 Compared with gasoline. Includes taxes on vehicle conversion/acqusition and annual
road/registration charges. 3 Central and state governments. Includes public transport. 4 Implicit
1
37
tax advantage through a low regulated wholesale price. 5 Tax exemption for Autogas vehicles
was introduced in 2011. 6 Ontario only; ended on 1 July 2010. 7 Ended in 2011. 8 Ended in 2010,
but reintroduced in 2011. 9 Diesel-vehicle conversions only; ended in March 2012. 10 Exemption
from the London congestion charge, phased out in 2011.
38
Figure A5.1: Share of Autogas in total automotive-fuel consumption and LDV fleet (%)
Note: Based on data for 2010 for vehicles for most countries (2009 for others) and 2009 for fuel
consumption.
The share of Autogas vehicles in the total number of passenger vehicles is,
unsurprisingly, closely correlated with the share of Autogas in total
automotive-fuel consumption (Figure A5.2). Fuel use in Korea is high relative
to the penetration of Autogas in the vehicle fleet, largely because taxis and
other commercial vehicles account for most Autogas consumption (because
of restrictions on the use of the fuel in private passenger cars).
39
Figure A5.2: Share of Autogas in total automotive-fuel consumption versus vehicle fleet, 2010
40
41
Table A5.1: Breakeven distance for a non-commercial Autogas LDV, 2010 (thousand km)
Autogas conversion against
Diesel
Gasoline
Diesel
Gasoline
Algeria
NC
74
NC
175
Australia
NC
24
NC
24
Belgium
68
40
53
36
Canada
NC
NC
NC
NC
China
34
n.a.
n.a.
France
24
Germany
56
56
India
0-61
25
0-77
39
Italy
62
47
62
47
Japan
NC
152
NC
152
Korea
25
32
Mexico
62
NC
116
Netherlands
36
26
Poland
22
64
62
Russia
0-8
NC
0-8
NC
16
13
32
0-47
24
0-32
40
48
81
80
0-19
NC
0-19
NC
Thailand
Turkey
United Kingdom
United States
Note: Zero indicates that Autogas is always competitive up to at least 100 000 km. A range
indicates the distances over which Autogas is competitve before the competing fuel becomes
more economic. NC indicates that Autogas is never competitive up to 100 000 km. n.a. is not
available.
5.3
42
Note: Canada, Russia and the United States are not shown, as Autogas is never competitive
against gasoline in those countries.
Figure A5.4: Autogas share of automotive-fuel consumption and breakeven distance against gasoline, 2010
43
5.4
The competitiveness of Autogas is the most important factor, though not the
only factor, in explaining the actual market penetration of Autogas and
recent rates of market growth. For example, Belgiums breakeven distance
for Autogas against gasoline is slightly lower than that of Korea, yet the
penetration of Autogas in Belgium is much lower even though Autogas is
always competitive against diesel. And the penetration of Autogas is
exceptionally low in France, where Autogas is extremely competitive. Several
factors explain these divergences:
Non-financial policies and measures: In some cases, the use of nonfinancial incentives or other measures have either helped to boost or to
hinder Autogas use. Public awareness and education campaigns to
promote Autogas have certainly made a significant contribution to
market growth in several countries, including the United Kingdom and
the United States. Mandates and public transport fleet conversion
programmes have also been very successful in several countries,
including China and the United States. In other cases, regulations
restricting Autogas use, including bans on underground parking (a
problem in several European countries), have been a barrier to market
development.
Public attitudes: Worries about the safety and reliability of Autogas have
clearly affected demand in several countries. This appears to be the
main reason why Autogas demand remains weak in Belgium and the
Netherlands, despite highly favourable taxation policies. Awkward
refuelling facilities also deter interest in using the fuel in some cases.
44
45
6.2
46
6.3
47
48
49
Algeria
Algeria
1.1
About 5% of the total vehicle stock is capable of running on Autogas. At end2010, there were 172 000 Autogas vehicles and 350 refuelling stations in
Algeria, accounting for about 14% of the national fuel-retailing network.
Almost all Autogas vehicles in Algeria are after-market conversions. There
are no vehicle manufacturers in the country and few OEM Autogas vehicles
are actively marketed in the country. Most imported cars are second-hand.
1.2
50
Algeria
since 2005, with the pump price of Autogas (including 17% VAT) set at only
66% of that of diesel. A higher excise duty on Autogas than on diesel is more
than outweighed by a much lower ex-refinery price (Table B1.1). Gasoline
taxes and retail prices were increased marginally in 2008, leaving the price of
Autogas at only 38% of that of super gasoline the lowest ratio of any
country in the world. The prices of Autogas and diesel have not changed
since 2005. Plans to liberalise the downstream oil market have stalled, but
the government has signalled its intention to maintain a strong price
incentive for consumers to use Autogas through favourable taxation, partly
to curb the growth in the use of diesel, of which Algeria is a net importer.
2006
2007
2008
2009
2010
Pump prices
Autogas
9.0
9.0
9.0
9.0
9.0
9.0
Diesel
13.7
13.7
13.7
13.7
13.7
13.7
Gasoline
23.0
23.0
23.0
23.2
23.2
23.2
Autogas
5.3
5.3
5.3
5.3
5.3
5.3
Diesel
4.3
4.3
4.3
4.3
4.3
4.3
12.5
12.5
12.5
12.7
12.7
12.7
Autogas
4.0
4.0
4.0
4.0
4.0
4.0
Diesel
2.3
2.3
2.3
2.3
2.3
2.3
Gasoline
9.2
9.2
9.2
9.3
9.3
9.3
Autogas
3.7
3.7
3.7
3.7
3.7
3.7
Diesel
9.4
9.4
9.4
9.4
9.4
9.4
10.5
10.5
10.5
10.5
10.5
10.5
Total taxes
Gasoline
Excise taxes
Pre-tax prices
Gasoline
51
Algeria
1.3
The strong price and tax incentives in place, together with low conversion
costs due to relatively low labour costs and financial incentives, make
Autogas highly competitive with diesel and gasoline. For a private converted
non-commercial light-duty vehicle (LDV), Autogas breaks even with gasoline
at about 73 000 km equivalent to less than four years of driving for a typical
user (Figure B1.2). Diesel breaks even with gasoline at a much higher
distance almost 200 000 km assuming that a diesel car costs 180,000
dinars more than an equivalent gasoline car. As running costs are only
slightly lower than for Autogas, diesel is never competitive with Autogas.
This analysis suggests that, for as long as the government maintains its
current supportive policy, Autogas could continue to gain market share.
52
Australia
Australia
2.1
53
Australia
2.2
2006
2007
2008
2009
2010
Pump prices
Autogas
0.495
0.570
0.545
0.646
0.599
0.588
Diesel
1.198
1.346
1.306
1.593
1.344
1.278
Gasoline*
1.120
1.241
1.216
1.408
1.285
1.259
Autogas
0.045
0.052
0.050
0.059
0.054
0.053
Diesel
0.472
0.472
0.472
0.472
0.472
0.472
Gasoline
0.500
0.500
0.500
0.500
0.500
0.500
Autogas
0.000
0.000
0.000
0.000
0.000
0.000
Diesel
0.381
0.381
0.381
0.381
0.381
0.381
Gasoline
0.381
0.381
0.381
0.381
0.381
0.381
Autogas
0.000
0.000
0.000
0.000
0.000
0.000
Diesel
0.708
0.843
0.807
1.067
0.841
0.781
Gasoline
0.637
0.747
0.725
0.899
0.787
0.763
Total taxes
Excise taxes
Pre-tax prices
* Regular unleaded.
54
Australia
2.3
55
Australia
are maintained. Assuming current pre-tax fuel prices and vehicle costs, the
breakeven distance would increase to around 34 000 km in 2015.
56
Belgium
Belgium
3.1
* Including Luxembourg.
3.2
Autogas has been completely exempt from excise duties since 1982. Diesel
currently carries a duty of 39 euro cents/litre and gasoline 61 cents/litre. As a
result, the price of Autogas at the pump is only 40% of that of gasoline and
just under half that of diesel (Table B3.1). The price differences in absolute
terms have widened in recent years as gasoline and diesel duties and pre-tax
fuel prices generally have increased. Grants for Autogas conversions were
stopped in 2003. Autogas vehicles are subject to an additional annual road
57
Belgium
tax over and above that paid by gasoline and diesel vehicles, amounting to
89.16 for vehicles with an engine of up to 1.3 litres, 148.68 up to 2.7 litres
and 208.20 for larger vehicles. This partly explains why Autogas has fallen
out of favour.
2006
2007
2008
2009
2010
Pump prices
Autogas
0.410
0.489
0.514
0.569
0.463
0.589
Diesel
1.040
1.079
1.094
1.252
1.021
1.202
Gasoline
1.280
1.353
1.384
1.456
1.316
1.456
Autogas
0.070
0.085
0.089
0.099
0.080
0.102
Diesel
0.530
0.518
0.513
0.535
0.526
0.595
Gasoline
0.812
0.827
0.840
0.853
0.835
0.866
Autogas
0.000
0.000
0.000
0.000
0.000
0.000
Diesel
0.350
0.331
0.323
0.318
0.349
0.386
Gasoline
0.590
0.592
0.600
0.600
0.607
0.614
Autogas
0.340
0.404
0.425
0.470
0.382
0.487
Diesel
0.510
0.561
0.581
0.717
0.495
0.607
Gasoline
0.470
0.526
0.544
0.603
0.480
0.589
Total taxes
Excise taxes
Pre-tax prices
3.3
Thanks to the excise-duty exemption, which more than offsets the higher
road tax on Autogas vehicles, Autogas breaks even with gasoline at around
36 000 km equivalent to about two years of driving for a typical private
user. Diesel breaks even with gasoline at a slightly lower distance, but
running costs are higher than for Autogas at higher distances (Figure B3.2).
As a result, Autogas breaks even with diesel at just over 50 000 km, or less
than three years driving. OEM vehicles are marginally more competitive than
conversions because of the slightly higher cost of the latter. It should be
noted, however, than the overall running costs of Autogas and diesel vehicles
are little different up to 100 000 km. This may explain why diesel vehicles are
generally preferred to Autogas vehicles.
58
Belgium
59
Canada
Canada
4.1
The Canadian Autogas market went into decline in the early 1990s after a
decade of growth. Autogas use peaked in 1992 at around 700 000 tonnes and
has since fallen to less than 150 000 tonnes in 2010 (Figure B5.1), accounting
for a mere 0.3% of total automotive-fuel use. The slump in Autogas use is a
direct result of the declining number of Autogas conversions in fleets,
primarily due to increased conversion equipment costs and the removal of
federal conversion grants. This has led many fleet users to switch from
Autogas to diesel fuel or CNG to realise fuel-cost savings. The number of
Autogas vehicles has nonetheless rebounded to some degree over the last
two years.
4.2
Autogas enjoys a significant per-litre tax advantage over gasoline and diesel,
thanks to lower provincial taxes and no federal excise tax on Autogas.
However, because fuel taxes across the board are relatively low in Canada,
WORLD LP GAS ASSOCIATION
60
Canada
the differences in prices at the pump in absolute terms are not very large.
The Autogas tax differential (including sales taxes) is currently 33 Canadian
cents/litre compared with diesel and 34 cents/litre compared with gasoline
(Table B5.1). Tax rates have not changed since 1997. The average pump price
of Autogas in 2010 was about a third lower than that of both diesel and
gasoline. Adjusted for differences in energy content per litre (and, therefore,
mileage), Autogas is slightly cheaper than gasoline, but more expensive than
diesel.
2006
2007
2008
2009
2010
Pump prices
Autogas
0.583
0.627
0.629
0.722
0.599
0.672
Diesel
0.927
0.966
0.989
1.234
0.885
1.001
Gasoline
1.019
1.152
0.949
1.031
1.012
1.016
Autogas
0.082
0.083
0.081
0.082
0.079
0.096
Diesel
0.239
0.263
0.259
0.265
0.245
0.269
Gasoline
0.339
0.338
0.328
0.357
0.335
0.338
Autogas
0.068
0.068
0.068
0.068
0.068
0.068
Diesel
0.178
0.178
0.178
0.178
0.178
0.178
Gasoline
0.277
0.280
0.279
0.303
0.282
0.285
Autogas
0.501
0.545
0.549
0.639
0.520
0.576
Diesel
0.688
0.703
0.730
0.969
0.640
0.732
Gasoline
0.747
0.887
0.706
0.775
0.774
0.780
Total taxes
Excise taxes
Pre-tax prices
61
Canada
an alternative fuel. These rebates ended in 2010 when federal and provincial
sales taxes were harmonised.
4.3
62
China
China
5.1
Autogas use has grown in a rather uneven fashion over the past decade or so,
in line with rapidly rising use of LP Gas generally. Nationwide, consumption
in China (including Hong Kong) amounted to just over 900 000 tonnes in 2010
almost five times the level of 2000, though demand has been relatively flat
since 2006. Just two cities account for most of the Chinese market:
Guangzhou, with demand of an estimated 400 000 tonnes and Hong Kong at
about 350 000 tonnes. The overwhelming bulk of Autogas use is in taxis and
buses. Despite the surge in Autogas use, it still accounts for less than 1% of
total automotive-fuel use in China. At end-2010, there were just over 140 000
Autogas vehicles and 310 refuelling sites. Autogas accounted for less than 4%
of total Chinese LP Gas consumption in 2010, about one-fifth of which is
imported.
5.2
63
China
the end of 2009. Today, in Guangzhou, all of the citys 18 000 taxis and 90%
of its 8 000 buses run on the fuel.1 In Hong Kong, all the citys 20 000 taxis
now run on Autogas, as a result of a conversion programme launched in 1997.
Diesel taxis are now banned. More than 30% of public buses in Hong Kong
also use Autogas. Several other cities have also mandated the conversion of
public taxis to alternative fuels. Almost of the taxis in Shanghai, for example,
have been converted to Autogas.
In addition to public-transport conversion programmes, the authorities of the
cities where Autogas is marketed and the central government promote its
use through favourable pricing and tax policies. The central government
levies no consumption tax on Autogas; the tax is levied on gasoline and diesel
(the rates were increased sharply in 2009). In addition, VAT is levied at a rate
of 17% on gasoline and diesel, but only 13% on Autogas. Wholesale and retail
prices are controlled by the authorities, though there is some flexibility for
retailers to adjust prices. As a result, the pump price of Autogas was only
60% of that of gasoline and 61% of that of diesel in 2010 (Table B6.1).
2006
2007
2008
2009
2010
Pump prices
Autogas
2.43
2.97
3.17
3.87
3.34
4.00
Diesel
3.66
4.44
4.87
5.78
5.82
6.57
Gasoline
3.69
4.45
4.60
5.71
5.91
6.67
Autogas
0.28
0.34
0.37
0.45
0.38
0.46
Diesel
0.63
0.74
0.81
0.94
1.65
1.75
Gasoline
0.74
0.85
0.87
1.03
1.86
1.97
Autogas
0.00
0.00
0.00
0.00
0.00
0.00
Diesel
0.10
0.10
0.10
0.10
0.80
0.80
Gasoline
0.20
0.20
0.20
0.20
1.00
1.00
Autogas
2.15
2.63
2.81
3.43
2.96
3.54
Diesel
3.03
3.69
4.06
4.84
4.17
4.82
Gasoline
2.95
3.60
3.74
4.68
4.05
4.70
Total taxes
Excise taxes
Pre-tax prices
5.3
www.worldlpgas.com/gain/autogas-is-best/the-development-of-chinas-auto-lpgindustry/
WORLD LP GAS ASSOCIATION
64
China
competitive with diesel, which breaks even with gasoline at around 45 000
km (Figure B5.2). For this reason, Autogas is currently the most competitive
fuel for high-mileage vehicles, such as taxis. However, it should be noted that
automotive fuel prices and, therefore, the relative competitiveness of
Autogas can vary markedly across cities where the fuel is available.
65
France
France
6.1
6.2
The French government has had a policy of encouraging the use of Autogas
(and CNG) since 1996, when it reduced sharply the excise duty on Autogas
and introduced a range of other fiscal and regulatory measures. The duty has
WORLD LP GAS ASSOCIATION
66
France
been constant since 1999 at 6 euro cents/litre, while duties on gasoline and
diesel, already much higher, have increased over that time Table B6.1). The
tax differential with Autogas currently stands at 36.8 cents/litre for diesel and
54.6 cents/litre for gasoline. As a result of the much lower excise tax in
Autogas, the price of Autogas at the pump is currently just over a third lower
than that of diesel and 45% lower than that of gasoline.
2006
2007
2008
2009
2010
Pump prices
Autogas
0.642
0.710
0.711
0.762
0.676
0.735
Diesel
1.023
1.079
1.092
1.270
1.002
1.145
Gasoline
1.161
1.237
1.273
1.356
1.207
1.344
Autogas
0.165
0.176
0.176
0.185
0.171
0.180
Diesel
0.585
0.594
0.605
0.636
0.592
0.616
Gasoline
0.779
0.792
0.811
0.828
0.804
0.826
Autogas
0.060
0.060
0.060
0.060
0.060
0.060
Diesel
0.417
0.417
0.426
0.428
0.428
0.428
Gasoline
0.589
0.602
0.606
0.606
0.606
0.606
Autogas
0.477
0.534
0.534
0.578
0.505
0.555
Diesel
0.438
0.485
0.487
0.634
0.410
0.529
Gasoline
0.382
0.445
0.462
0.528
0.403
0.518
Total taxes
Excise taxes
Pre-tax prices
There are a number of other public policy measures in place to encourage the
use of Autogas. Until the end of 2010, the principal measure was a tax credit
of 2 000 for the purchase of an OEM Autogas vehicle with CO2 emissions of
less than 136 grammes per kilometre or the conversion of gasoline-fuelled
vehicles with emissions of less than 155 g/km. This incentive, which had been
in place for several years, was abolished for budgetary reasons in 2012.
Nonetheless, the purchase of any vehicle (including one fuelled by Autogas)
with low emissions now qualifies for an ecological bonus (a cash grant). The
threshold was lowered from 110 g/km in 2011 to 105 g in 2012. Grants for the
first qualifying category of cars are set at 300 (down from 400 in 2011),
while the maximum grant for the least-polluting cars remains at 5 000. The
French LP Gas Association (CFBP) has estimated that of the 15 million
gasoline vehicles in France, 1.3 million are eligible for the bonus if converted
to run on Autogas.1
67
France
Other tax measures include a rebate of between 50% and 100% on the
annual road tax on commercial vehicles and the initial vehicle-registration tax
for commercial and non-commercial Autogas vehicles in most departments.
Autogas vehicles also benefit for two years from a 50% rebate on the
national tax on company cars in the case of dual-fuelled vehicles and a 100%
rebate where the vehicle is fuelled solely by Autogas. Autogas vehicles are
also exempt from the national annual tax on tourist vehicles. Tourist-related
businesses can also recover the VAT on Autogas purchases. In addition,
investments in new Autogas or converted vehicles and refuelling facilities can
be fully depreciated in the first year.
Autogas is also promoted through regulatory measures. Public fleets,
including municipal bus operators, have been obliged since 1999 to replace at
least 20% of retired vehicles of more than 3.5 tonnes with Autogas or CNG
vehicles. Autogas vehicles are exempt from driving restrictions imposed in
major cities during periods of high pollution. And in cities associated with the
Association des voitures cologiques (environmentally friendly cars
association), fleet LDVs that run on Autogas or other clean fuels are entitled
to one-an-a-half hours of free parking; in Paris, such vehicles benefits from
reduced car-parking fees and extended delivery hours in the city centre.
6.3
In 2010, the large tax credit on Autogas conversions for private individuals,
which typically covered the entire cost, ensured that Autogas had lower
running costs than gasoline after only 8 000 km equivalent to less than six
months for a typical private owner (Figure B6.2). The breakeven distance for
an OEM car was 24 000 km. Diesel breaks even with gasoline at a
significantly higher distance, but Autogas is always more competitive, even
though the difference in running costs narrows slightly with distance.
The breakeven distances for Autogas increased with the suppression of the
tax credit for conversion and OEM purchases in 2011; based on 2010 fuel and
vehicles costs, a converted Autogas vehicle now breaks even with gasoline at
almost 70 000 km and an OEM vehicle at well over 80 000 km. In addition,
diesel is always more competitive than Autogas, regardless of distance the
opposite of the situation in 2010.
68
France
69
Germany
Germany
7.1
The Autogas market in Germany has been expanding extremely rapidly for
several years as a result of highly favourable fuel taxation. Demand reached
almost 500 000 tonnes in 2010 up from a mere 2 000 tonnes at the
beginning of the decade (Figure B7.1). Nonetheless, Autogas still accounts
for only about 1% of total automotive-fuel use. There are an estimated
430 000 Autogas-powered vehicles in Germany, most of them converted
gasoline cars, though the range of OEM vehicles on the market has been
expanding: most of the main carmakers now offer Autogas models. Autogas
is widely available throughout the country, with around 6 000 filling stations
now selling the fuel.
7.2
70
Germany
included a commitment to keep the tax rate on Autogas well below that on
the other fuels until at least the end of 2018, in order to provide certainty to
investors in Autogas distribution and refuelling infrastructure and motorists
looking to switch to Autogas. The German LP Gas Association, DVFG, is
lobbying the government to extend this rebate to 2025.
As a result of the favourable rate of tax levied on Autogas, the price of the
fuel at the pump is barely more than half that of gasoline and more than 40%
cheaper than diesel (Table B7.1). These price advantages have increased in
recent years, as pre-tax prices of Autogas have generally risen less than those
of the other fuels.
2006
2007
2008
2009
2010
Pump prices
Autogas
0.642
0.710
0.711
0.762
0.676
0.735
Diesel
1.065
1.116
1.169
1.333
1.090
1.226
Gasoline
1.223
1.289
1.341
1.403
1.295
1.417
Autogas
0.166
0.170
0.185
0.194
0.186
0.192
Diesel
0.617
0.624
0.657
0.683
0.644
0.666
Gasoline
0.824
0.833
0.869
0.878
0.862
0.881
Auto gas
0.092
0.092
0.092
0.092
0.092
0.092
Diesel
0.470
0.470
0.470
0.470
0.470
0.470
Gasoline
0.655
0.655
0.655
0.655
0.655
0.655
Autogas
0.369
0.395
0.397
0.447
0.401
0.433
Diesel
0.448
0.492
0.512
0.650
0.446
0.560
Gasoline
0.399
0.456
0.472
0.525
0.433
0.536
Total taxes
Excise taxes
Pre-tax prices
http://www.asstech.com/en/downloads/newsletter_Autogas_engl.pdf
71
Germany
7.3
The very low rate of excise tax on Autogas relative to the taxes on gasoline
and diesel means that an Autogas vehicle is always cheaper to run than a
diesel vehicle and breaks even with a gasoline vehicle at about 56 000 km
(Figure B7.2). Thus, the typical motorist pays back the upfront additional cost
of an Autogas vehicle within about three years of driving. The conversion
costs is estimated at around 2 200, which is roughly the same as the typical
premium for an OEM Autogas vehicle over the gasoline equivalent. The cost
of a diesel vehicle is slightly higher. Autogas is always competitive against
diesel, regardless of distance, as the purchase price of a new diesel vehicle is
marginally higher than that of an OEM Autogas vehicle or the cost of
converting an existing gasoline vehicle.
72
India
India
8.1
The Indian Autogas market has grown rapidly in recent years, reaching just
over 320 000 tonnes in 2010 (Figure B8.1). Consumption was negligible just
eight years earlier. Yet Autogas still accounts for less than 1% of total
automotive-fuel use. There are around 1.4 million vehicles capable of running
on Autogas in India, many of them two- and three-wheelers (which is why
average consumption per vehicle is just 400 litres per year). An estimated
four-fifths of those vehicles are converted, though most of the main vehicle
manufacturers now offer factory-fitted Autogas models. In many cities, a
large share of three-wheeler rickshaws an important means of public
transport has been converted to run on Autogas.
There are close to 1 100 filling stations across the country, spread over 400
cities. State-owned Indian Oil is the leading Autogas marketer, with a 35%
share of the national market and more than 270 service stations selling
Autogas. Bharat Petroleum and Hindustan Petroleum also state-owned
are the other main marketers. There are around a dozen factory-built
Autogas models on sale in India, including those made by Maruti, Tata
Motors, General Motors and Hyundai.
8.2
The main public policy incentive for Autogas in India is the exemption from
excise tax and the generally lower rates of state sales tax compared with
73
India
2006
2007
2008
2009
2010
Pump prices
Autogas
n.a.
n.a.
n.a.
n.a.
n.a.
33.06
Diesel
32.83
37.57
34.95
36.08
34.45
41.12
Gasoline
43.23
49.16
48.41
50.51
44.55
52.53
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Diesel
13.84
15.28
12.29
12.54
10.73
n.a.
Gasoline
25.29
26.96
25.94
26.43
23.56
n.a.
Auto gas
0.00
0.00
0.00
0.00
0.00
0.00
Diesel
4.87
5.14
4.76
4.78
3.75
4.50
14.71
15.05
14.77
14.82
13.79
14.35
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Diesel
18.99
22.28
22.66
23.54
23.72
n.a.
Gasoline
17.94
22.19
22.47
24.08
20.98
n.a.
Total taxes
Autogas
Excise taxes
Gasoline
Pre-tax prices
Auto gas
74
India
Kolkata, a mandate was adopted to replace all public vehicles more than 15
years old by 31 July 2010. Of the 32 000 auto-rickshaws plying on the streets
of Kolkata and its suburbs, 4 000 have so far been converted to Autogas. And
as of September 2009, the Union Territory of Chandigarh allows only
Autogas-fuelled three-wheelers to operate on its roads. Chennai and Pune
have also encouraged the introduction of Autogas; over 10 000 autorickshaws now run on Autogas in Pune.
The government is looking at ways of better managing the distribution of
subsidised bottled LP Gas so as to prevent it from being diverted to use as
Autogas. This would be expected to lead to an increase in demand for
Autogas from filling stations. One measure that has been proposed is limiting
the number of subsidised cylinders per household to four per year. A more
radical proposal by the Indian Finance Minister, announced in 2011, would
involve replacing all fuel subsidies with direct cash transfers to poor
households, though strong public opposition has prevented this measure
from being adopted as yet.
8.3
Low taxes and, therefore, low pump prices mean that converting a gasoline
vehicle to run on Autogas pays back after about 25 000 km (Figure B8.2). The
conversion costs is estimated at 22 000 rupees (about 400), which is very
low by international standards because of low labour costs and the relatively
unsophisticated vehicles that are converted. OEM models, which are
assumed to cost 34 00 rupees more to purchase than an equivalent gasolinefuelled model, break even with gasoline at nearly 40 000 km. Yet, after
80 000 km, diesel is the most competitive fuel option.
75
Italy
Italy
9.1
Italy has the second-largest Autogas market in the European Union after
Poland and the fifth-largest in the world. It was one of the first countries to
introduce the fuel, in the 1950s. Annual consumption fluctuated around
1.3 million tonnes at the beginning of the 2000s, but declined to around
940 000 tonnes in 2007; it then rebounded to over 1.2 Mt in 2010 because of
the increase attractiveness of the fuel amid rising fuel prices and, until 2010,
generous vehicle acquisition and conversion incentives (Figure B9.1).
Autogas accounts for 38% of total LP Gas consumption in Italy and over 3%
of total automotive-fuel demand. The Italian government has traditionally
promoted the use of Autogas through fiscal incentives, initially to provide an
outlet for surplus volumes of LP Gas from the large domestic refining
industry, though Italy has since become an importer of LP Gas. In recent
years, environmental concerns have been the main driving force behind
Autogas policies.
The number of Autogas vehicles in use has surged in recent years, reaching
1.7 million at end-2010 about 800 000 more than just two years earlier.
Most Autogas vehicles are converted gasoline-fuelled vehicles, though sales
of OEM vehicles are growing rapidly; roughly four-fifths of all the cars
76
Italy
9.2
The Italian government and local authorities encourage Autogas use through
a mixture of policies, including favourable fuel taxes, incentives for clean
vehicles and traffic regulations. Autogas currently enjoys a substantial excisetax advantage of 44 euro cents/litre over gasoline and 30 cents/litre over
diesel. These differentials have increased in recent years with a gradual
increase in diesel and gasoline taxes and a sizeable cut in the tax on Autogas
in 2006 and 2007. As a result, the pump price of Autogas is only 48% that of
gasoline and 54% that of diesel (Table B9.1).
2006
2007
2008
2009
2010
Pump prices
Autogas
0.570
0.647
0.626
0.681
0.563
0.660
Diesel
1.108
1.165
1.163
1.342
1.081
1.214
Gasoline
1.220
1.285
1.298
1.379
1.232
1.363
Autogas
0.252
0.257
0.229
0.238
0.219
0.235
Diesel
0.597
0.608
0.614
0.645
0.603
0.625
Gasoline
0.767
0.778
0.780
0.794
0.769
0.791
Auto gas
0.157
0.149
0.125
0.124
0.125
0.125
Diesel
0.412
0.414
0.420
0.422
0.423
0.423
Gasoline
0.564
0.564
0.564
0.564
0.564
0.564
Auto gas
0.318
0.390
0.397
0.443
0.344
0.425
Diesel
0.512
0.557
0.549
0.697
0.478
0.589
Gasoline
0.453
0.507
0.518
0.586
0.462
0.572
Total taxes
Excise taxes
Pre-tax prices
http://www.lpgasmagazine.co.uk/autogas/European-Lpg-Autogas-Demand-MayTriple.htm
WORLD LP GAS ASSOCIATION
77
Italy
were reintroduced in March 2011. Funding of 24.8 million has been set aside
for the year to finance grants of 500 for an OEM acquisition or conversion.
Many Autogas vehicles also benefit from a lower annual vehicle road tax,
which depends on engine power and CO2 emissions. A two-year exemption
is granted for the purchase of a vehicle complying with Euro-4 or Euro-5
emissions standards and emitting less than 140 g/km, provided a Euro-1/2 car
is scrapped simultaneously. Moreover, a number of cities have mandated the
conversion of bus and other public vehicle fleets to either Autogas or CNG for
environmental reasons and have adopted traffic regulations that exempt
Autogas vehicles from driving restrictions imposed on gasoline and diesel
vehicles during periods of acute pollution.
9.3
78
10
Japan
Japan
10.1
Japan has the sixth-largest Autogas market in the world with a long history of
Autogas use. Consumption amounted to 1.2 million tonnes in 2010, equal to
just over 2% of total road-transport fuel consumption. Consumption was flat
at around 1.5-1.6 Mt between 2000 and 2007, but then began to decline,
mainly because of a significant improvement in the fuel economy of the fleet
(Figure B10.1). Autogas accounts for about 7% of total Japanese LP Gas
consumption.
The size of the Autogas fleet has contracted slightly in recent years, from a
peak of just under 300 000 vehicles in 2004 to an estimated 280 000 in 2009,
but rebounded to 288 000 in 2010 (which suggests consumption may pick up
again in 2011). Taxis make up the bulk of the fleet (90% of all taxis are
Autogas-fuelled), and commercial fleet LDVs for almost all the rest. The two
largest OEMs, Nissan and Toyota, produce dedicated mono-fuel taxis for the
national market. Sales have been running at around 40 000 vehicles per year.
10.2
79
Japan
that on gasoline (Table B10.1). The tax on diesel has increased slightly in
recent years, whereas that on gasoline has fallen marginally. The pre-tax
retail price of Autogas is also slightly lower than those of diesel and gasoline;
Autogas prices have risen much less than the prices of the other two fuels in
recent years. The lower price results partly from low international prices and
the fact that no import duties are levied on LP Gas for social reasons (it is
widely used for household cooking and heating). The pump price of Autogas
is currently 74% of that of diesel and 63% of that of gasoline.
2006
2007
2008
2009
2010
Pump prices
Autogas
67.7
75.7
79.3
95.5
77.1
83.3
Diesel
100.3
113.0
118.9
140.5
103.5
112.8
Gasoline
124.5
137.5
139.8
156.9
120.2
132.9
Autogas
13.0
13.4
13.6
14.3
13.5
13.8
Diesel
37.4
38.0
38.3
37.9
37.5
38.0
Gasoline
59.7
62.4
62.5
61.2
61.6
62.2
9.8
9.8
9.8
9.8
9.8
9.8
Diesel
34.1
34.1
34.1
32.7
34.1
34.1
Gasoline
53.8
55.8
55.8
53.7
55.8
55.8
Auto gas
54.6
62.3
65.7
81.2
63.6
69.5
Diesel
62.9
75.0
80.6
102.5
66.0
74.8
Gasoline
64.8
75.1
77.3
95.7
58.6
70.8
Total taxes
Excise taxes
Auto gas
Pre-tax prices
80
Japan
30 000 000 per station (US$390 000) and 1 986 000 ($26 000) per station
per year. This programme was also ended in March 2012.
Stringent regulations governing noxious emissions in designated urban areas
restrict the use of diesel vehicles. In contrast, there are no significant
restrictions on where Autogas vehicles can go (including underground car
parks and tunnels). In addition to the lower fuel cost, this is why most
operators of high-mileage commercial LDVs generally opt for Autogas over
diesel even though the latter works out cheaper (see below).
10.3
Autogas breaks even against gasoline at a distance of around 150 100 000 km
for both converted and OEM LDVs on the assumption that they both cost
around 350 000 ($4 500) more than a standard gasoline-fuelled vehicle
(Figure B10.2). Diesel is always competitive against Autogas and is
competitive against gasoline at distances of more than about 55 000 km.
This analysis demonstrates why Autogas is largely confined to taxis and
public fleets.
81
11
Korea
Korea
11.1
The Republic of Korea was one of the first countries to promote the
widespread use of Autogas and for many years has had far and away the
largest Autogas market in the world. Demand surged in the 1990s in
response to strong government support for the fuels use in taxis, other fleet
vehicles and public buses, including a large fuel-tax advantage.
Environmental restrictions on diesel vehicles also helped encourage Autogas
use by high-mileage vehicles. The phenomenal growth in Autogas demand
began to slow at the beginning of the 2000s, mainly due to a sudden change
in government policy towards Autogas use. This was motivated by the
perceived improvement in emissions performance of new diesel and gasoline
vehicles relative to Autogas vehicles, and the objective of boosting revenues
from automotive-fuel taxes. Excise duties on Autogas were raised in stepwise fashion with the aim of realigning the pump prices of Autogas with
those of diesel and gasoline (see below). Despite these changes and a
continuing ban on the use of Autogas in private passenger car, Autogas use
has continued to grow with rising demand for automotive fuels generally,
reaching almost 4.5 million tonnes in 2010 (Figure B11.1). Autogas accounts
for just under half of total Korean LP Gas use and over 17% of total roadtransport fuel consumption.
82
Korea
The number of Autogas vehicles has continued to grow rapidly in line with
rising consumption of the fuel. There were around 2.3 million registered
Autogas vehicles at the end of 2010, of which about three-quarters were
private LDVs (including taxis) and the rest sports utility vehicles and lightduty commercial vans and trucks. The number of Autogas vehicles has
doubled since 2000. The Autogas fleet is equal to about 14% of the countrys
total vehicle fleet. Most Autogas vehicles are locally manufactured OEMs. A
large range of vehicles is marketed, including hybrids. Autogas is available at
more than 1 600 service stations.
11.2
The exceptional size and pace of growth of the Korean Autogas market is
attributable to many years of highly supportive government policies,
including favourable taxation of Autogas. Excise-tax differentials were
reduced progressively over the five years to 2006 under a plan to restructure
the taxation of all automotive fuels, but the tax on Autogas is still
significantly lower than that on diesel and gasoline (Table B11.1).
2006
2007
2008
2009
2010
Pump prices
Autogas
723
748
774
1007
831
952
Diesel
1077
1220
1270
1615
1384
1501
Gasoline
1428
1489
1525
1695
1582
1709
Autogas
329
310
297
300
297
308
Diesel
517
583
624
627
646
655
Gasoline
874
879
883
837
890
901
Auto gas
263
242
226
208
221
221
Diesel
419
472
509
480
520
518
Gasoline
744
744
745
683
746
746
Auto gas
395
438
477
707
534
645
Diesel
560
638
646
988
737
847
Gasoline
555
610
642
858
693
808
Total taxes
Excise taxes
Pre-tax prices
Since July 2007, government tax policy has aimed to keep pump prices of
Autogas at roughly 50% of those of gasoline and diesel prices at 85% of
gasoline prices. Since July 2008, the tax on Autogas has stood at 221
won/litre, compared with 746 won for gasoline and (since 2010), 518 won/litre
for diesel. In 2010, the pre-tax price of Autogas was also markedly lower than
that of both diesel and gasoline (partly because LP Gas imports attracts a
lower duty than those of the other fuels). As a result, the pump price of
WORLD LP GAS ASSOCIATION
83
Korea
Autogas was equal to only 56% that of gasoline and 63% that of diesel. Thus,
Autogas and, to a lesser extent, diesel prices are somewhat higher than the
official targets. Higher international butane prices have also pushed up pretax Autogas prices, as butane makes up the bulk of Autogas supply in the
country. In May 2011, the import duty on LP Gas, which was 2%, was
removed, giving a small price advantage to Autogas other the other fuels.
The government continues to place restrictions on the ownership of Autogas
vehicles. Private passenger cars are not allowed to be converted to Autogas,
nor are private sales of OEM Autogas vehicle permitted. Only commercial
cars (taxis and rental cars) are allowed to run on Autogas. There are
exemptions for disabled people and for vehicles that can carry more than
seven people.
The Korean government does not make available grants or any other form of
financial incentive for OEM Autogas LDV purchases on the grounds that
favourable taxation is sufficient to encourage the use of Autogas. However, it
has established a programme to promote the conversion of old diesel trucks
to Autogas through a subsidy of 4 million won. Some 30 000 trucks were
converted in 2009 under this programme.1 The government has also
launched a clean vehicle programme, mandating the purchase of minimum
proportions of Autogas and other clean vehicles in its LDV fleet and funds a
research and development programme for Autogas LDVs and HDVs. Autogas
vehicles also enjoy rebates on highway tolls and parking fees. Taxis are
effectively obliged to use Autogas for reasons of local air quality.
11.3
Autogas remains highly competitive with both gasoline and diesel, despite a
marked narrowing of the fuel price advantage of Autogas against the other
two fuels since 2000. Converted Autogas LDVs break even with gasoline
passenger LDVs at 25 000 km and OEM vehicles (which are only slightly more
expensive) at 32 000 km (Figure B11.2). The payback period is, thus, less than
two years for private motorists and well under a year for taxis. Diesel breaks
even with gasoline at closer to 60 00 km and with Autogas at well over 200
000 km, based on a price premium for a diesel car of 2.5 million won over a
gasoline car. This analysis clearly demonstrates the continuing appeal of
Autogas vehicles in Korea.
84
Korea
85
12
Mexico
Mexico
12.1
Mexicos Autogas market once one of the largest in the world has
contracted markedly in recent years, mainly because of a sharply narrowing
of the price differential with gasoline and, especially, diesel. Sales peaked at
around 1.3 million tonnes in 2004 and then slumped to less than
800 000 tonnes in 2007; sales have since fluctuated around that level (Figure
B12.1). Some Autogas vehicle owners reportedly switched back to using
gasoline, partly because of technical problems that have resulted from poorquality vehicle conversions and because of uncompetitive Autogas prices.
Diesel cars have also been increasingly favoured over Autogas vehicles:
several new diesel models have been introduced onto the Mexican market to
meet rising demand, driven by a significant fall in the price of diesel against
both gasoline and Autogas. Autogas demand has levelled off, thanks to a
government policy of holding LP Gas prices down and allowing diesel and
gasoline prices to rise (largely for social reasons). As a result, Autogas is once
again competitive, holding out the prospect of a sustained recovery in
demand in the coming years.
86
Mexico
There are 2 100 refuelling sites around the country a large number relative
to the size of the fleet.
12.2
The government controls wholesale and retail oil product prices directly in
Mexico. The prices of LP Gas (sold in cylinders or as Autogas) are set
according to a formula that takes account of a distribution margin based on
actual costs and value-added tax (which varies by state). There are no excise
duties on Autogas. Gasoline and diesel do carry excise tax (Impuesto Especial
sobre Produccin y Servicios), though the rates are relatively low and tend to
fluctuate from one year to the next (Table B12.1). In 2010, the pump price of
Autogas was equal to only 26% of that of gasoline and 30% of the diesel
price. These ratios have fallen sharply in recent years: in 2006, they stood at
64% and 93% respectively. There are no subsidies for vehicle owners to
convert to Autogas or purchase OEM vehicles. However, some Autogas
vehicles are exempted from driving restrictions in Mexico City for antipollution reasons.
2006
2007
2008
2009
2010
Pump prices
Autogas
n.a.
5.02
5.17
5.59
5.04
5.42
Diesel
5.22
5.43
5.83
6.23
7.70
8.54
Gasoline
7.46
7.85
8.48
8.97
9.43
9.81
Autogas
n.a.
0.65
0.67
0.73
0.66
0.75
Diesel
0.72
0.71
0.76
0.81
1.16
1.18
Gasoline
1.77
1.29
1.11
1.17
1.62
1.35
Auto gas
0.00
0.00
0.00
0.00
0.00
0.00
Diesel
0.05
0.00
0.00
0.00
0.19
0.00
Gasoline
0.92
0.31
0.00
0.00
0.45
0.00
Auto gas
n.a.
4.37
4.50
4.86
4.38
4.67
Diesel
4.50
4.72
5.07
5.42
6.54
7.36
Gasoline
5.69
6.56
7.38
7.80
7.82
8.46
Total taxes
Excise taxes
Pre-tax prices
12.3
87
Mexico
of a new OEM vehicle means that it becomes competitive with gasoline only
at almost 100 000 km. A converted Autogas vehicle is always more
competitive than diesel, but an OEM vehicle never is because of the higher
upfront cost. The breakeven distance of Autogas has dropped substantially in
the last five years thanks to relatively lower prices: in 2006, Autogas broke
even with gasoline at more than 100 000 km but was less competitive than
diesel. This explains the recent reversal in the decline in Autogas conversions
and fuel sales.
88
13
Netherlands
Netherlands
13.1
89
Netherlands
13.2
2006
2007
2008
2009
2010
Pump prices
Autogas
0.510
0.568
0.692
0.675
0.578
0.644
Diesel
1.023
1.087
1.087
1.287
0.996
1.170
Gasoline
1.352
1.415
1.459
1.537
1.343
1.503
Autogas
0.136
0.146
0.169
0.170
0.163
0.189
Diesel
0.535
0.545
0.545
0.618
0.579
0.615
Gasoline
0.892
0.902
0.920
0.943
0.923
0.963
Auto gas
0.055
0.055
0.059
0.062
0.071
0.087
Diesel
0.371
0.371
0.371
0.413
0.420
0.428
Gasoline
0.676
0.676
0.687
0.697
0.709
0.723
Auto gas
0.373
0.423
0.522
0.505
0.414
0.455
Diesel
0.488
0.542
0.542
0.668
0.417
0.555
Gasoline
0.460
0.512
0.539
0.594
0.419
0.540
Total taxes
Excise taxes
Pre-tax prices
There are no grants or tax credits available for Autogas conversions or OEM
purchases. However, vehicle-purchase taxes are significantly lower than for
diesel cars (and the same as for gasoline cars). The annual vehicle (road) tax,
known as the holdership tax, for Autogas vehicles is higher than for gasoline
vehicles but lower than for diesel.
13.3
90
Netherlands
Note: the analysis takes into account differences in annual vehicle road taxes.
91
14
Poland
Poland
14.1
Poland has the fourth-largest Autogas market in the world after Korea,
Turkey and Russia, thanks to rapid growth in demand through much of the
1990s and the first half of 2000s. This was driven by a substantial fiscal
advantage over conventional fuels and low conversion costs. However,
demand has fallen back a little since 2007, because of a marked improvement
in fuel economy as old cars have been replaced with more fuel-efficient
models the number of Autogas vehicles has continued to grow.
Consumption almost tripled between 2000 and 2007, reaching just over 1.8
million tonnes, but has since fallen back to below 1.7 Mt (Figure B14.1).
Preliminary data point to a further small decline to just over 1.6 Mt in 2011.
Consumption per Autogas vehicle averaged 97 litres per month in 2011, a fall
of 9 litres, or 8.5%, on the 2010 level (POGP, 2012). Autogas, which is equal
to 11.5% of total road-fuel use in Poland, now accounts for almost threequarters of the countrys total LP Gas consumption. The overwhelming bulk
of the countrys LP Gas needs are imported, mainly from Russia.
92
Poland
14.2
The boom in the Autogas market resulted from a large tax differential
between Autogas on the one hand and gasoline and diesel on the other. The
excise tax on Autogas jumped from 0.31 to 0.45 zlotys/litre between 2003 and
2005, edging up to 0.46 zlotys by 2010; but the tax is still well below those
levied on the other fuels (1.28 zlotys on diesel and 1.66 zlotys on gasoline).
The excise tax on Autogas was unchanged in 2011. Pre-tax Autogas prices are
also significantly lower than those of the other two fuels. Consequently, the
pump price of Autogas is equal to just under half that of gasoline and just
over half that of diesel (Table B14.1).
2006
2007
2008
2009
2010
Pump prices
Autogas
1.87
2.04
2.00
2.17
1.84
2.22
Diesel
3.68
3.82
3.77
4.22
3.64
4.26
Gasoline
3.99
3.98
4.21
4.30
4.12
4.55
Autogas
0.79
0.82
0.81
0.84
0.79
0.86
Diesel
1.85
1.88
1.87
1.91
1.80
2.05
Gasoline
2.29
2.11
2.41
2.42
2.40
2.48
Auto gas
0.45
0.45
0.45
0.45
0.46
0.46
Diesel
1.19
1.19
1.19
1.15
1.14
1.28
Gasoline
1.57
1.40
1.65
1.65
1.65
1.66
Auto gas
1.08
1.22
1.19
1.33
1.05
1.36
Diesel
1.83
1.94
1.90
2.31
1.84
2.21
Gasoline
1.70
1.87
1.80
1.88
1.73
2.07
Total taxes
Excise taxes
Pre-tax prices
In contrast to most other Autogas markets that have seen rapid growth,
there are no grants or other kinds of subsidy for vehicle conversions.
Nonetheless, in 2010, the Polish Council of Ministers adopted a decree on
national system of green investment projects, which takes into account the
role of LP Gas in reducing noxious emissions in the transport sector.
93
Poland
14.3
The breakeven distance for Autogas against gasoline vehicles is very low in
Poland, both because of the big tax advantage on the fuel itself and the
relatively low costs of vehicle conversions. The latter factor is partly due to
the sometimes poor quality of conversions, which has raised concerns about
safety. Labour costs are also significantly lower than in Western Europe. The
cost of converting an old gasoline car of four to five years old is currently
estimated at around 3 000 zlotys (700 euros), compared with close to 6 000
zlotys (over 1 400 euros) for a typical new Euro-5 vehicle. Assuming an
average cost of 3 000 zlotys yields a breakeven distance of around 22 000 km
less than a year and a half of driving for a private car owner (Figure B14.2).
94
15
Russia
Russia
15.1
Russia has the worlds third-largest Autogas market. Demand has been rising
steadily since the mid-2000s. In 2010, it jumped to 2.3 million tonnes, though
this appears to be largely due to a re-categorisation of residential LP Gas
demand (Figure B15.1). Based on the 2010 data, Autogas accounted for
about 5% of road-fuel consumption. Consumption is concentrated in the
southeast regions of Krasnodar, Stavropol, Rostov and Volgograds. At end2010, there were an estimated 1.3 million Autogas vehicles and 2 000
refuelling stations across Russia, including 131 stations run by the statecontrolled gas giant, Gazprom. Around 60% of Autogas vehicles, almost all of
which are conversions, are thought to be more than ten years old.1
Note: The large increase in Autogas volumes and vehicles in 2010 is thought to be due mainly to
a re-categorisation of LP Gas demand in the residential sector.
15.2
The only significant policy incentive for Autogas in Russia is the absence of an
excise tax on the fuel (gasoline and diesel both carry taxes). Nonetheless, the
price of Autogas at the pump is still close to that of both diesel and gasoline
on a volume basis, making it more costly on an energy-content basis. The
per-litre Autogas price in 2010 was equal to 84% of that of gasoline and 97%
1
95
Russia
of that of diesel. Retail fuel prices are deregulated. There are no other fiscal
or regulatory incentives.
2006
2007
2008
2009
2010
Pump prices
Autogas
n.a.
n.a.
13.4
15.1
14.1
18.8
Diesel
14.0
16.8
17.3
22.7
18.8
19.5
Gasoline
15.3
17.7
19.0
22.3
20.4
22.4
Autogas
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Diesel
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Gasoline
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Auto gas
0.0
0.0
0.0
0.0
0.0
0.0
Diesel
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Gasoline
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Auto gas
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Diesel
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Gasoline
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Total taxes
Excise taxes
Pre-tax prices
15.3
96
Russia
97
16
Thailand
Thailand
16.1
Thailands Autogas market has boomed in the last few years as a result of
highly favourable taxation aimed at encouraging a switch away from more
polluting diesel and gasoline in major urban centres. Between 2004 and 2010,
Autogas consumption quadrupled, reaching about 800 000 tonnes (Figure
B16.1). Autogas now accounts for almost 5% of total road-transport fuel sales
and 17% of total LP Gas use in Thailand. The rapid growth in Autogas
demand has contributed to Thailand becoming a net importer of LP Gas.
16.2
Thailands oil market was largely deregulated in 1991, but the government
still caps the wholesale and retail prices of LP Gas for social reasons, using an
oil stabilisation fund to balance differences in the ex-refinery prices (which
are deregulated) and wholesale prices. The retail price of Autogas, which is
the same as that of LP Gas sold in cylinders, remained unchanged between
2008 and 2011. All automotive fuels, including Autogas, are subject to an
excise tax, a mineral tax and a conversation fund tax, as well as an oil
98
Thailand
stabilisation levy. Overall, these taxes are much lower for Autogas than the
other two main fuels. In 2005, the negative stabilisation fund levy on Autogas
more than offset the other taxes and resulting in a net subsidy. The
stabilisation fund levy has been positive since 2008, but is still much smaller
than for the other fuels.
Regulated Autogas pump prices have risen much less than gasoline or diesel
prices in recent years, which has made Autogas increasingly competitive.
Autogas prices barely rose between 2005 and 2010, whereas gasoline prices
increased by more than half and the diesel price by 43%. The average pump
price of Autogas in 2010 was only 27% of that of gasoline and 40% of that of
diesel (Table B16.1). There are no subsidies for vehicle conversions.
2006
2007
2008
2009
2010
Pump prices
Autogas
9.09
9.09
9.14
9.79
9.79
9.79
Diesel
20.03
25.59
25.66
31.26
24.77
28.69
Gasoline
23.10
26.79
28.32
33.43
31.34
36.10
Autogas
0.44
0.80
1.51
2.09
2.07
2.28
Diesel
2.99
5.55
5.17
4.79
6.88
8.07
Gasoline
7.27
8.35
9.61
11.58
15.92
17.81
Auto gas
-0.16
0.20
0.92
1.45
1.43
1.64
Diesel
1.68
3.88
3.49
2.75
5.26
6.19
Gasoline
5.76
6.59
7.75
9.39
13.87
15.45
8.65
8.29
7.63
7.70
7.72
7.51
Diesel
17.04
20.04
20.49
26.47
17.89
20.62
Gasoline
15.83
18.44
18.71
21.85
15.42
18.29
Total taxes
Excise taxes**
Pre-tax prices
Auto gas
For the first time since 2007, the government raised the price of Autogas in
January 2012 in an effort to ease the burden on the oil stabilisation fund.
Prices are set to increase in a gradual fashion through to the end of the year,
by which time prices will reach just over 14 baht per litre a rise of 44%. But
Autogas will still cost a lot less than gasoline and diesel. The price of CNG is
also being increased: by the end of 2012, the price will reach a level almost
71% above that of a year earlier.
16.3
The very low level of Autogas prices results in a breakeven distance for a
typical passenger car converted to run on Autogas against gasoline of just
99
Thailand
over 16 000 km ((Figure B16.2). The breakeven distance rises to 32 000 for an
OEM vehicle. This analysis assumes a conversion cost of 30 000 baht
(US$1 000) and a premium of 60 000 baht(US$1 200) for a diesel car over a
gasoline car. Diesel breaks even with gasoline at a distance of more than
50 000 km. As marginal running costs for Autogas cars are lower than for
diesel cars, Autogas is always more competitive.
100
17
Turkey
Turkey
17.1
101
Turkey
17.2
The take-off in Autogas use in Turkey came about more as a result of a social
policy of low taxation of LP Gas as a household fuel than a deliberate policy
of promoting alternative fuels. An unregulated conversion industry took root
to allow motorists to take advantage of the low price of LP Gas and low taxes
on Autogas. Tax policy changed several times during the early 2000s, as the
government sought to control the growth of the market and prevent
suppliers from illegally diverting LP Gas from the cylinder market to the
Autogas market. The Turkish LP Gas market was deregulated at the
beginning of 2005, allowing retailers to set prices freely. But the government
continues to exert influence over pricing through control of ex-refinery prices
and taxation. No non-fiscal incentives for Autogas are currently in place.
2006
2007
2008
2009
2010
Pump prices
Autogas
n.a.
1.40
1.71
2.05
2.01
2.44
Diesel
1.96
2.22
2.30
2.87
2.59
3.06
Gasoline
2.53
2.78
2.88
3.21
3.12
3.68
Autogas
n.a.
n.a.
0.72
0.83
0.83
0.89
Diesel
1.13
1.17
1.19
1.32
1.33
1.40
Gasoline
1.75
1.79
1.80
1.92
1.97
2.04
Autogas
n.a.
n.a.
0.46
0.52
0.52
0.52
Diesel
0.83
0.83
0.83
0.88
0.93
0.94
Gasoline
1.36
1.36
1.36
1.43
1.49
1.47
Autogas
n.a.
n.a.
0.99
1.21
1.18
1.55
Diesel
0.82
1.05
1.12
1.55
1.26
1.66
Gasoline
0.79
0.99
1.08
1.29
1.15
1.65
Total taxes
Excise taxes
Pre-tax prices
Since the middle of the 2000s, a more stable tax policy has been in place. The
same rate of value-added tax is now applied to Autogas as to gasoline and
diesel (a higher rate had been applied in 2000-2002 to rein back demand) and
excise taxes on Autogas have been held well below the level of those on the
other two fuels. In 2010, excise taxes were 0.52 liras/litre on Autogas,
compared with 1.47 liras on gasoline and 0.935 liras on diesel (Table B17.1).
Coupled with lower pre-tax prices, this resulted in a pump price of Autogas
WORLD LP GAS ASSOCIATION
102
Turkey
equal to just under a third of that of gasoline and 80% of that of diesel.
Although these ratios have risen in the last few years, the per-litre price
advantage of Autogas in absolute terms has remained broadly constant
against diesel and has increased against gasoline.
Following technical and safety problems during the early period of market
development, the government established stringent conversion standards
and laws in 2005: all conversion centres must be licensed by the Turkish
Standards Institute and all conversions must be approved by a qualified
engineer; the converted vehicle must then be tested for leaks by an
independent organisation every two years. As a result, the safety and
reliability of conversions has increased. There are now more than 1 000
accredited conversion centres offering a wide range of kits, some of which
1
have been developed by Turkish firms. The European Autogas Quality
Standard EN 589 became mandatory at the beginning of 2004, which has
helped to reduce problems caused by poor fuel quality.
17.3
The low cost of conversions in Turkey, due to low labour costs and economies
of scale, results in relatively low breakeven distances for most Autogas
conversions. For a typical conversion, which is assumed to cost around 1 200
lira ($700), the distance is only 24 000 km against gasoline (Figure B17.2).
However, diesel breaks even with both gasoline and Autogas at around
47 000 km. This analysis does not take account of mandatory inspection
charges for Autogas vehicles. However, diesel servicing costs are marginally
higher than for Autogas, such that running costs (including fuel) for Autogas
are not much higher than for diesel up to 100 000 km.
103
Turkey
104
18
United Kingdom
United Kingdom
18.1
The UK Autogas market saw spectacular growth in the first half of the last
decade. From almost nothing in 2000, consumption reached 110 000 tonnes
in 2006 and peaked at 120 000 tonnes in 2008. It fell back to just under
100 000 tonnes in 2010, largely because of an improvement in the average
fuel efficiency of Autogas vehicles and because of a government policy of
raising excise taxes on Autogas relative to the other two main fuels; this
appears to have dampened interest in conversions and OEM purchases
(Figure B18.1). Most Autogas use is in London, where an exemption from the
London congestion charge initially stimulated demand (see below).
Nationwide, Autogas still plays only a very marginal role in meeting
automotive-fuel demand, accounting for just 0.3% of total transport fuels
use. By end-2010, there were 150 000 Autogas vehicles in use, mostly
conversions, and 1 400 refuelling stations.
18.2
The emergence of the Autogas market in the United Kingdom in the early
2000s resulted from the introduction of strong fiscal incentives, including the
establishment of a large excise-duty differential between Autogas and
gasoline and diesel in 1999 and grants for vehicle conversions and purchases,
which were phased out in 2005. The excise tax on Autogas duty was held
constant at under 5 pence/litre, equivalent to only 10% of the tax on both
gasoline and diesel, between end-March 2000 and end-March 2006, but has
105
United Kingdom
increased every year since, in line with the Alternative Fuels Framework
policy, adopted in 2003 (Table B18.1). That policy provided for the excise tax
on Autogas to rise by no more than the equivalent of 1 pence/litre each year.
It also stipulated that any change in duty must be announced five years
before its implementation to allow stakeholders to take those changes into
account in their vehicle purchase and investment decisions.
Correspondingly, the tax differential has narrowed markedly since 2006, but
still remains significant. The average excise tax on Autogas over the calendar
year 2010 was 16.7 p/litre 40.5 p/litre less than the tax on gasoline and
diesel. The pre-tax price of Autogas was also significantly lower. As a result,
Autogas prices at the pump are currently just over half those of gasoline and
diesel on a volume basis.
2006
2007
2008
2009
2010
Pump prices
Autogas
0.418
0.450
0.473
0.559
0.531
0.647
Diesel
0.909
0.952
0.969
1.175
1.039
1.193
Gasoline
0.867
0.913
0.944
1.071
0.993
1.169
Autogas
0.110
0.129
0.153
0.187
0.206
0.263
Diesel
0.606
0.614
0.633
0.678
0.680
0.750
Gasoline
0.600
0.608
0.630
0.663
0.673
0.746
Auto gas
0.047
0.062
0.083
0.104
0.137
0.167
Diesel
0.471
0.472
0.489
0.505
0.544
0.572
Gasoline
0.471
0.472
0.489
0.505
0.544
0.572
Auto gas
0.308
0.321
0.319
0.373
0.325
0.384
Diesel
0.302
0.338
0.336
0.496
0.360
0.443
Gasoline
0.267
0.305
0.314
0.408
0.319
0.423
Total taxes
Excise taxes
Pre-tax prices
The new government that took office in 2010 has introduced the so-called
Fair Fuel Stabiliser, which provides for excise-tax rates generally to adjust
according to fluctuations in international prices to protect motorists from
swings in driving costs. However, it has so far retained the commitment to
narrowing the Autogas tax differential. The Chancellor of the Exchequer
announced in the 2011 budget in March an immediate cut in the tax on
Autogas from 17.4 pence/litre to 16.6 p/litre (the same absolute reduction as
for the other two fuels), but the tax was planned to rise to 19.7p/litre on 1
January 2012 1p/litre more than the planned increase in the tax on gasoline
and diesel. Later in 2011, the Chancellor announced that the planned
increases in fuel taxes would be deferred until August 2012. At that time, the
106
United Kingdom
tax differential will thus narrow to around 41 p/litre. The government has
indicated that it plans to maintain the differential until 2015. 1
The only significant non-tax central government incentive for Autogas (and
other alternative fuel) vehicles is a 10 discount on the annual vehicle excise
duty for all cars registered after 1 March 2001. The government no longer
provides subsidies for purchases or conversions of Autogas vehicles. Up to
March 2005, the government made available grants through the PowerShift
programme to cover a large part of the cost of converting gasoline vehicles
to Autogas and some other alternative fuels, as well as the difference in price
between a bi-fuelled Autogas vehicle and that of its gasoline or diesel
equivalent.
In London, the alternative fuel discount (AFD), which provided a 100% rebate
on the London congestion charge for Autogas vehicles, was discontinued in
2011, on the grounds that some of the environmental benefits of the
alternative fuels have been outpaced by technological developments in other
vehicles. Nonetheless, Autogas vehicles already on the Powershift Register
at end-2010 will continue to be exempt from the congestion charge
exemption for two more years. The AFD has been replaced by a new scheme,
the Greener Vehicle Discount, which provides a full discount to any car that
emits nor more than 100g per km of CO2 and meet the Euro-5 air-quality
standard. The intention is to lower the threshold eventually to 80g/km; a
review of the exemption criteria will be carried out in 2012.
There are some restrictions on underground parking by Autogas vehicles.
Such vehicles are not allowed to pass through Eurotunnel, even if the
Autogas fuel system has been disconnected and the fuel tank emptied.
18.3
The large tax differential for Autogas results in a breakeven distance for
conversions of around 48 000 km against gasoline (Figure B18.2). This
assumes an average conversion cost of 1 500 and a cost premium of a diesel
car over a gasoline car of a similar amount. The running costs of an Autogas
conversion are always lower than those of a diesel vehicle regardless of
distance. An Autogas OEM breaks even with both gasoline and diesel at
about 80 000 km. Despite the narrowing of the excise-tax differential, the
competitiveness of Autogas in converted vehicles has actually improved in
recent years, mainly because higher fuel costs generally have boosted the
absolute financial savings from using Autogas.
107
United Kingdom
108
19
United States
United States
19.1
There are currently around 200 000 vehicles, mostly fleet vehicles and forklift trucks, operating on Autogas. A number of OEM Autogas vehicles are
available and a number of new vehicle platforms under development,
including medium- and heavy-duty trucks and school buses. Manufacturers
include Alliance AutoGas, Blue Bird Corp, CleanFuel USA, Collins Bus, Icom
North America, Impco Technologies, Roush CleanTech and Freightliner.
There are 2 600 refuelling stations across the country. At least 250 new
stations are due to be added in 2011, mostly funded by grants from the US
federal Department of Energy (DOE).1
109
United States
19.2
2006
2007
2008
2009
2010
Pump prices
Autogas*
0.576
0.588
0.700
0.845
0.692
0.768
Diesel
0.633
0.714
0.761
1.003
0.651
0.790
Gasoline
0.626
0.706
0.768
0.891
0.651
0.768
Autogas
0.091
0.114
0.118
0.121
0.114
0.117
Diesel
0.128
0.130
0.132
0.141
0.136
0.139
Gasoline
0.104
0.127
0.131
0.134
0.127
0.130
Auto gas
0.036
0.036
0.036
0.036
0.036
0.036
Diesel
0.064
0.064
0.064
0.064
0.064
0.064
Gasoline
0.049
0.049
0.049
0.049
0.049
0.049
Auto gas
0.485
0.475
0.583
0.723
0.578
0.651
Diesel
0.506
0.584
0.628
0.862
0.515
0.651
Gasoline
0.522
0.580
0.637
0.757
0.524
0.638
Total taxes**
Excise taxes***
Pre-tax prices
* Not including the federal Alternative Fuel Tax Credit. ** Average across states. State taxes on
Autogas are assumed to be the same as those on gasoline.*** Federal excise duties only.
The prices shown in Table B19.1 are compiled from data published by the
DOE Clean Cities Program the only published source of data on retail
Autogas prices. The data is contained in a quarterly publication, The Clean
Cities Alternative Fuel Price Report, which reports average delivered fuel
WORLD LP GAS ASSOCIATION
110
United States
prices for gasoline, diesel, propane and other alternative fuels.1 However,
there is evidence that these prices may overstate the actual prices paid by
Autogas users, particularly since the published data also covers small-volume
sales at public services for non-Autogas uses and may give insufficient weight
to the sale of Autogas at private stations run by commercial fleet operators.
A report prepared by ICF International on behalf of the National Propane Gas
Association (NPGA), released in March 2012, finds that the price of Autogas
is actually significantly than that of gasoline, the real pump-price advantage
of Autogas over gasoline averaging $1.17 per gallon ($0.31 per litre) in the
first half of 2011 (ICF International, 2012). The report expects the price
differential to grow to $1.50-1.70 per gallon ($0.40-45 per litre) in 2012, as a
result of the growing discount of wholesale propane prices to gasoline prices
as supply from shale gas and oil production expands.
Until the end of 2011, Autogas prices were also effectively lower for many
users thanks to the Alternative Fuel Excise Tax Credit. This federal tax credit,
which amounted to 50 cents/gallon (13.2 cents/litre), was available for any
alternative fuel, including Autogas, and for any entity that retailed or used
Autogas (a private citizen, bulk fuel retailer, company or state/local
government) that is registered with the Internal Revenue Service (IRS). This
credit effectively reduced the pump price by the full amount of the credit.
The credit was not allowed if an incentive for the same alternative fuel was
also determined under the rules for the ethanol or biodiesel tax credits. In
December 2010, the credit was extended until 31 December 2011. A bill (the
Propane Green Autogas Solutions Act of 2011), which would extend through
to 2016 existing tax credits for Autogas as well as for Autogas-powered and
refuelling infrastructure (see below), was introduced in the House of
Representatives in May 2011 but has not yet been adopted. According to
another study prepared for the NPGA, passage of the legislation could create
up to $5.7 billion per year in new economic activity and 42 000 net new jobs in
the United States over five years (ICF International, 2011).
Alternative fuels that are used for certain purposes, including farming, some
types of local bus services, school buses, non-profit educational services and
by state governments, are fully exempt from federal fuel taxes.
111
United States
credit amounted to $2 500 for an LDV and up to $32 000 for a heavy-duty
truck.
The other main form of federal support for Autogas is alternative vehicle
acquisition and fuel-use mandates. Under the Energy Policy Act of 1992, 75%
of new LDVs acquired by certain federal fleets must be alternative fuel
vehicles (AFVs). Federal fleets are also required to use alternative fuels in
dual-fuel vehicles unless the DOE determines an agency qualifies for a
waiver; grounds for a waiver include the lack of alternative fuel availability
and cost restrictions. Additionally, Executive Order 13423, issued in January
2007, requires federal agencies with 20 vehicles or more in their US fleet to
reduce petroleum consumption by 2% per year, relative to their Fiscal Year
(FY) 2005 baseline, through to FY 2015. Agencies must also continue to
increase their alternative fuel use by 10% per year, relative to the previous
year.
Executive Order 13514, issued in October 2009, requires each federal agency
to develop, implement, and annually update a Strategic Sustainability
Performance Plan. Federal agencies must measure, reduce, and report their
greenhouse gas (GHG) emissions, with an overall federal government GHG
emissions reduction goal of 28% by 2020, relative to a 2008 baseline. Federal
fleets of 20 vehicles or more must reduce petroleum consumption by a
minimum of 2% per year through to the end of FY 2020 as compared to 2005
baseline usage. Each agency must establish a comprehensive inventory of
GHG emissions for FY 2010, to be updated on an annual basis thereafter.
Reductions may be achieved through a variety of measures including the use
of AFVs, and fleet optimization efforts.
Additional requirements for federal fleets were included in the Energy
Independence and Security Act of 2007, including requirements to acquire
low GHG-emitting vehicles. These requirements are dependent upon formal
rulemaking by DOE.
The 1992 Act also requires certain state government and alternative fuel
provider fleets to acquire AFVs. Compliance is required by fleets that
operate, lease, or control 50 or more LDVs within the United States. Of those
50 vehicles, at least 20 must be used primarily within a single Metropolitan
Statistical Area/Consolidated Metropolitan Statistical Area. Those same 20
vehicles must also be capable of being centrally fuelled. Covered fleets earn
credits for each vehicle purchased, and credits earned in excess of their
requirements can be banked or traded with other fleets. On March 20, 2007,
the DOE issued a rule that allows fleets the option to choose a petroleum
reduction path in lieu of acquiring AFVs.
The federal government also runs a number of programmes that encourage
the use of alternative fuels. One of the most important is the Clean Cities
Program, which supports local public/private initiatives to promote the
deployment of AFVs and reduce conventional fuel consumption in urban
areas.1 As part of the American Recovery and Reinvestment Act, the DOE
11
112
United States
allocated nearly $40 million spread across 25 Autogas projects as part of $300
million given to Clean Cities projects. These grants will fund the purchase of
2 400 Autogas vehicles and the construction of nearly 250 new Autogas
refuelling stations. In 2011, President Obama announced the creation of a
National Clean Fleets Partnership, to be run by the DOE, under which more
than 20 000 advanced technology vehicles, including Autogas vehicles, are to
be deployed.
19.3
113
United States
Note: Takes into account the $0.50 per gallon fuel tax credit that was available until the end of
2010.
114
2005
Algeria
Australia
Belgium
Bulgaria
Canada
China
Croatia
Czech Rep.
Dominican Rep.
France
Germany
India
Iran
Italy
Japan
Korea
Lithuania
Macedonia
Mexico
Netherlands
Pakistan
Peru
Philippines
Poland
Romania
Russia
Serbia
Taiwan
Thailand
Turkey
United Kingdom
United States
Yemen
Other
World
2006
314
1 150
100
304
200
626
22
88
250
139
51
77
290
1 035
1 623
3 987
195
n.a.
1 240
353
43
45
n.a.
1 775
85
600
n.a.
32
303
1 501
110
755
105
509
17 907
325
1 150
100
300
220
851
40
120
308
130
100
136
280
990
1 555
4 018
211
26
1 208
328
400
99
32
1 810
145
810
100
46
459
1 607
116
765
100
488
19 373
2007
330
1 107
100
366
155
908
45
120
405
118
154
275
210
944
1 583
4 362
213
38
784
322
428
93
200
1 830
150
1 000
105
51
572
2 005
114
675
107
469
20 338
2008
334
1 059
64
343
152
847
76
77
404
111
317
248
190
1 006
1 491
4 379
186
44
889
345
412
191
231
1 770
161
1 000
245
65
776
2 112
120
600
110
388
20 743
2009
341
1 059
63
331
146
876
78
77
444
108
423
319
184
1 099
1 402
4 457
166
47
860
339
419
199
239
1 705
169
1 042
247
71
903
2 305
107
588
112
391
21 319
2010
348
1 147
62
337
142
909
72
76
483
115
480
321
180
1 227
1 202
4 450
165
51
837
336
423
217
242
1 660
153
2,300
249
73
922
2 490
99
578
115
405
22,866
20052010*
2.1%
-0.1%
-9.2%
2.1%
-6.7%
7.7%
26.9%
-2.9%
14.1%
-3.7%
56.6%
33.1%
-9.1%
3.5%
-5.8%
2.2%
-3.3%
18.2%**
-7.6%
-1.0%
58.0%
36.9%
65.8%**
-1.3%
12.5%
30.8%
25.6%**
17.9%
24.9%
10.7%
-2.1%
-5.2%
1.8%
-4.5%
5.0%
115
2005
Algeria
Australia
Belgium
Bulgaria
Canada
China
Croatia
Czech Rep.
Dominican Rep.
France
Germany
India
Iran
Italy
Japan
Korea
Lithuania
Macedonia
Mexico
Netherlands
Pakistan
Peru
Philippines
Poland
Romania
Russia
Serbia
Taiwan
Thailand
Turkey
United Kingdom
United States
Yemen
Other
World
2006
165
515
90
216
80
133
30
170
50
160
65
n.a
70
990
295
1 890
175
n.a.
750
248
75
40
n.a.
2 000
70
500
n.a.
10
103
1 500
128
196
55
688
11 456
166
500
90
216
82
166
45
200
134
150
125
250
70
950
295
2 047
210
25
600
275
150
52
4
1 980
125
500
90
12
125
1 800
138
208
55
528
12 363
2007
167
620
90
220
60
121
45
200
170
140
200
500
70
925
292
2 187
212
30
550
275
200
60
25
2 050
130
600
90
12
183
2 050
144
200
56
426
13 300
2008
167.5
650
50
210
50
98
80
200
170
140
300
550
64
930
289
2 321
212
32
540
240
200
98
29
2 080
185
600
500
20
541
2 240
153
190
56
449
14 634
2009
165.1
636
50
222
55
117
80
208
170
120
380
1 522
66
1 500
280
2 298
216
39
535
235
200
125
30
2 170
185
581
550
16
529
2 320
149
196
56
433
16 433
2010
172
655
50
220
60
143
80
170
170
180
430
1 321
66
1 700
288
2 300
217
45
535
260
196
125
31
2 325
190
1,282
550
18
473
2 394
150
199
56
425
17,473
20052010*
0.8%
4.9%
-11.1%
0.4%
-5.6%
1.4%
21.7%
0.0%
27.7%
2.4%
45.9%
51.6%**
-1.2%
11.4%
-0.5%
4.0%
4.4%
15.6%**
-6.5%
0.9%
21.2%
25.8%
66.2%**
3.1%
22.1%
20.7%
57.2%**
12.3%
35.6%
9.8%
3.2%
0.3%
0.4%
-9.2%
8.8%
116
Annex 2:
Annex 2: References
References
AGDRET (Australian Government Department of Resources, Energy and
Tourism) (2011), Strategic Framework for Alternative Transport Fuels
December 2011, AGDERT, Canberra.
Argonne National Laboratory Center for Transportation Research, United
States (2000), Fuel-Cycle Emissions for Conventional and Alternative Fuel
Vehicles: An Assessment of Air Toxics, US DOE, Chicago.
APRUE (Agence de promotion et de rationalisation de lutilisation de
lnergie) (2011), Programme des nergies renouvelables et de lefficacit
nergtique, March 2011, APRUE, Algers.
European Council of Ministers of Transport (ECMT) (2001), Vehicle Emissions
Reduction, OECD, Paris.
ICF International (2012), The Price of Propane for Fleet Vehicle Use, March
2012, NPGA, Washington D.C.
117
Annex 3:
118