Autogas Incentive Policies 2012 Updated July 2012

Copyright
2012 World LP Gas Association.

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WORLD LP GAS ASSOCIATION
AUTOGAS INCENTIVE POLICIES
Contents
Contents
Executive summary
Introduction
6
10
Objectives of the study

Approach and scope
Structure of this report
Acknowledgements
10
10
11
11
PART A: MAIN FINDINGS
12
The global Autogas market
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
Comparative environmental performance
13
15
15
16
18
20
2.1
2.2
2.2.1
2.2.2
2.2.3
2.3
Environmental benefits of Autogas

Light-duty vehicle emissions
Regulated pollutant emissions
Non-regulated pollutant emissions
Greenhouse-gas emissions
Heavy-duty vehicle emissions
Government policies to promote alternative fuels
20
21
21
22
23
24
26
3.1
3.2
3.2.1
3.2.2
3.2.3
Principles of alternative-fuel policies

Typology of policies to promote alternative fuels
Financial incentives
Regulatory policies and measures
Other measures
International comparison of Autogas incentive policies
26
27
27
28
29
30
4.1
4.1.1
4.1.2
4.2
4.3
Fuel taxation and pricing

Comparative taxation of Autogas
Comparative pricing of Autogas
Autogas vehicle subsidies
Other incentives
30
30
32
35
36
5.1
5.2
5.3
Autogas share of the automotive fuel market

39
Comparative competitiveness of Autogas
40
Impact of Autogas competitiveness on automotive-fuel market penetration 42
Impact of non-financial incentives

Lessons for policymakers
44
45
6.1
6.2
6.3
The rationale for promoting Autogas

Critical success factors for Autogas market development
Formulating an effective Autogas strategy
45
46
47
5.4
6
Effectiveness of Autogas incentive policies
39
PART B: COUNTRY SURVEYS
49
Algeria
50
1.1
1.2
1.3
Autogas market trends

Government Autogas incentive policies
Competitiveness of Autogas against other fuels
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

Fuel-tax differentials
Federal clean-fuel incentive and programmes
State programmes
109
110
110
111
113
113
17
18
19
Annex 1: Global Autogas market data

Annex 2: References
Annex 3: Note on data sources
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
Executive Summary
usually has to be less than two to three years to encourage commercial

vehicle owners to switch; private individuals often demand a quicker return
on their investment.
The payback period is very sensitive to the extent to which government
incentives lower fuel costs relative to the other fuels and lower the upfront
expenditure on the vehicle. Taxes on Autogas must be low enough relative to
those on gasoline and diesel to compensate for the lower mileage of Autogas
per litre (due to its lower energy-content-to-volume ratio) and to ensure that
the pump price of Autogas is low enough to provide an incentive for
motorists to switch fuels. In some cases, lower taxes also have to offset the
higher pre-tax price of Autogas at the pump. The wide variation in actual
Autogas pump prices among the countries surveyed, both in absolute terms
and relative to the prices of other fuels, mainly reflects differences in the way
automotive fuels are taxed. In six countries, there are no excise taxes on
Autogas at all. In all the other countries except the United States, excise
taxes are less than half of those on gasoline on a volume basis.
Financial incentives aimed at the vehicle, in the form of grants or tax credits,
can also be effective in offsetting part or all of the cost of conversion or the
incremental cost of buying an Autogas vehicle. Such incentives have become
more important as the cost of conversion and installing dual-fuel systems has
increased with the growing sophistication of fuel-injection engine
technology. In 2010, seven countries made available such subsidies for either
gasoline or diesel conversions. Vehicle incentives are particularly important
where fuel taxes generally are low, limiting the scope for savings on running
costs.
The market penetration of Autogas is strongly correlated with the
competitiveness of Autogas vis--vis gasoline and diesel. We have
estimated, for each country, the distance at which an Autogas light-duty
vehicle becomes competitive against gasoline and diesel in each country,
based on 2010 data on pump prices and vehicle costs. The results show that
Autogas use and rates of market growth are generally highest in countries
where the break-even distance is lowest, especially against gasoline. In four
of the five largest Autogas markets, Autogas breaks even with gasoline at a
distance of less than 50 000 km. At the other extreme, Autogas is least
competitive in Canada and the United States, where Autogas accounts for a
very small share of total automotive-fuel consumption.
But the competitiveness of Autogas is not the only factor that drives Autogas
demand. For example, the break-even distance for Autogas against gasoline
is lowest in France, yet the penetration of Autogas there a mere 0.26% of
total automotive fuel use is the lowest of all the countries surveyed except
the United States, even though Autogas is also competitive against diesel.
Several factors explain these divergences:
Government policy commitment: The Autogas market has tended to

develop more quickly where the government has shown a strong, longterm policy commitment in favour Autogas.
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.
Restrictions on diesel vehicles: Local and central government

environmental restrictions on the use of diesel vehicles have been an
important factor behind the success of Autogas in Korea and Japan.
Availability of vehicles and fuel: Autogas has struggled to penetrate the

fuel market in some countries, where car makers have been reluctant to
market OEM models or where there is a limited number of refuelling
sites selling Autogas.
Public attitudes to Autogas safety: Worries about the safety and

reliability of Autogas have clearly affected demand in several countries.
Awkward refuelling facilities may also deter interest in using the fuel in
some cases.
In countries where Autogas remains small, the role of the government in

giving an initial strong impetus to kick-start the simultaneous development
of demand and supply infrastructure is vital. Even where strong financial
incentives exist, Autogas use will not necessarily take off until critical market
mass is achieved. The market needs to be large enough to demonstrate to
potential Autogas users and fuel providers that the fuel is safe, reliable, easy
to use and a cost-effective alternative to conventional fuels. Autogas must be
widely available. And the market must be big enough to support a viable
network or properly-trained mechanics to convert and maintain Autogas
vehicles and ensure the availability of spare parts and equipment. In practice,
achieving critical mass requires a concerted effort on the part of all
stakeholders vehicle manufacturers and converters, Autogas suppliers and
the government to promote the development of the market.
National circumstances affect the best approach to designing and
implementing Autogas incentive policies. These include budgetary
considerations, which might limit available funds for subsidies, the
seriousness of local pollution problems, fuel-supply and cost issues, the stage
of development of the Autogas market and the prevailing barriers to fuel
switching, including restrictive regulations and the local cost of vehicle
conversions. Whatever the circumstances, however, experience in the
countries surveyed in this study has clearly shown that the single most
important measure and a necessary condition for making Autogas an
attractive fuel to vehicle owners is favourable fuel-tax treatment vis--vis
conventional fuels.
Executive Summary
Policy stability and a strong, long-term commitment by the government to

achieving environmental-policy objectives are vital to success in promoting
the development of alternative-fuel markets. Stakeholders need to be given
clear advance warning of any major shift in policy. Without policy stability,
coherence and consistency, neither fuel suppliers, nor equipment
manufacturers, nor consumers can be confident that they will be able to
make a reasonable return on the investments required to switch fuels.
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.
Approach and scope

The study involved a detailed survey of Autogas taxation and other incentive
programmes covering 19 of the worlds largest Autogas markets: Algeria,
Australia, Belgium, Canada, China, France, Germany, India, Italy, Japan,
Korea, Mexico, the Netherlands, Poland, Russia, Thailand, Turkey, the United
Kingdom and the United States. All but one of these countries have annual
sales of more than 100 000 tonnes (sales dipped to 99 000 tonnes in 2010 in
the United Kingdom). Historical data was compiled on pump prices, excise
duties and sales taxes for Autogas and the conventional fuels, gasoline and
diesel. In addition, we collated data on road-fuel consumption and vehicles
fleets, as well as information on current tax and non-tax policies with regard
to conventional and alternative fuels. These data cover the period 2005 to
2010. The first edition of this report, which can be downloaded free of charge
from the WLPGA website (www.worldlpgas.com), contains data on most of
the countries covered in this update for the period 2000-2004.
The data on Autogas prices and taxes were used to analyse quantitatively the
competitiveness of Autogas vis--vis gasoline and diesel in all 19 national
Autogas markets. This analysis takes account of fuel prices at the pump,
differences in mileage per litre (due to differences in energy content per litre
and vehicle-engine technology among the three fuels) and the relative costs
of acquiring each type of vehicle and converting conventionally fuelled
vehicles to Autogas. It also takes into account local market conditions and
regulations. The results were then compared to the current penetration of
Autogas in the overall automotive fuel market and recent rates of Autogasmarket growth.
10
Introduction
The study also reviewed recent studies of the comparative environmental

performance of Autogas in order to examine the rationale for promoting use
of the fuel.
Structure of this report

Part A of this report presents the main findings of the study:
Section 1 provides an overview of current global Autogas market trends

and the main drivers of Autogas demand.
Section 2 assesses the environmental performance of Autogas

compared with conventional fuels and other alternative fuels.
Section 3 sets out the principles of government policies and the

different approaches available to policy-makers to promote alternative
fuels generally.
Section 4 summarises and compares current Autogas incentive policies

across the countries surveyed in the study, focusing on differences in
taxes and subsidies.
Section 5 analyses the impact of differences in policies on the

competitiveness of Autogas vis--vis conventional fuels and the
penetration of Autogas in the overall market for automotive fuels.
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
Part A: Main findings
PART A: MAIN FINDINGS
12
Global Autogas Market
The global Autogas market

1.2
Market trends
Autogas is the most widely used and accepted alternative to the

conventional oil-based transport fuels, gasoline and diesel. A number of
countries today have well-developed Autogas markets. Global consumption
of Autogas reached 22.9 million tonnes in 2010 (Table A1.1), and is increasing
rapidly. Demand increased by 8.5 Mt, or 59%, between 2000 and 2010, with
growth coming from established and emerging markets (Figure A1.1).
Demand nonetheless remains highly concentrated in a small number of
markets: the five largest countries accounted for 53% of world consumption
in 2010 and the top ten for 75%. The 19 countries surveyed in this report
together accounted for 84% of world Autogas use. The four largest
consumers Korea, Turkey, Russia and Poland saw the largest increases in
consumption in absolute terms over the ten years to 2010.
There are more than 17.4 million Autogas vehicles in use around the world
and over 57 000 refuelling sites. Autogas accounted for little more than 9% of
global consumption of LP Gas, but this share varies considerably across
countries. Among the countries surveyed, the share is highest in Poland,
where it is 73%, and is lowest in the United States at 1%. A detailed
breakdown of the global market and recent trends in consumption, numbers
of vehicles and refuelling sites can be found in Annex 1.
Box A1.1: Autogas characteristics

Autogas is the abridged name for automotive liquefied petroleum gas (LP Gas, or LPG) that is, LP Gas used as an
automotive transport fuel. LP Gas is the generic name for mixtures of hydrocarbons that change from a gaseous to
liquid state when compressed at moderate pressure or chilled. The chemical composition of LP Gas can vary, but is
usually made up of predominantly propane and butane (normal butane and iso-butane). Autogas generally ranges
from a 30% to 99% propane mix. In some countries, the mix varies according to the season as the physical
characteristics of the two gases differ slightly according to ambient temperatures.
LP Gas is derived either as a product from crude-oil refining or from natural-gas or oil production. At present, more
than 60% of global LP Gas supply comes from natural gas processing plants, but the share varies markedly among
regions and countries. With both processes, LP Gas must be separated out from the oil-product or natural-gas
streams. LP Gas is generally refrigerated for large-scale bulk storage and seaborne transportation as a liquid, but it
is transported and stored locally in pressurised tanks or bottles (cylinders).
LP Gas has high energy content per tonne compared to most other oil products and burns readily in the presence of
air. These characteristics have made LP Gas a popular fuel for domestic heating and cooking, for commercial use,
for agricultural and industrial processes, including as a feedstock in the petrochemical industry, and increasingly as
an alternative automotive fuel.
13
Table A1.1: Largest Autogas markets, 2010

Consumption
(thousand tonnes)
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
Source: WLPGA (2011).
Figure A1.1: Global Autogas consumption, 2000-2010
* 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.
The make-up of the Autogas vehicle fleet by vehicle-type differs by country,

reflecting mainly differences in government policies. In the two largest Asian
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
Drivers of Autogas use
The emergence of Autogas as an alternative to gasoline and diesel is the

direct result of government policies to address energy-security and/or
environmental concerns. Autogas has been far more successful than any
other alternative automotive fuel because of its practical and cost
advantages over other fuels.
1.2.1
Alternative automotive-fuel policies
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
In most cases, an existing conventional-fuel vehicle is converted to run on

Autogas by installing a separate fuel system that allows the vehicle to switch
between both fuels. This equipment can be installed at the time the car is
manufactured (in which case, the car is known as an OEM). For mainly
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
Environmental benefits of Autogas
Road-transport vehicles are an important source of both air pollutants and

climate-destabilising greenhouse gases. There is clear evidence of the
harmful impact on human health of exposure to vehicle pollutants. As a
result, local air quality has become a major policy issue in almost all
countries. Most industrialised countries have made substantial progress in
reducing pollution caused by cars and trucks through improvements in fuel
economy, fuel quality and the installation of emission-control equipment in
vehicles. Increasingly, these improvements have been driven by emission
standards. However, rising road traffic has offset in most countries at least
part of the improvements in vehicle-emissions performance. Less progress
has been made in developing countries, where local pollution in many major
cities and towns has reached catastrophic proportions.
The European Union and the United States have been the main driving forces
behind vehicle emissions standards. Every developed country and most
developing countries have progressively introduced these or similar
standards for new vehicles. The international nature of vehicle
manufacturing and trade has prompted increasing harmonisation of
standards and regulation. The most broadly implemented standards,
generally referred to as Euro regulations, are those developed by the United
Nations Economic Commission for Europe (UNECE), which are uniformly
applied across the European Union and in many other parts of the world.
Different standards are applied to light-duty vehicles (essentially passenger
cars and vans, in most cases with a maximum gross weight of less than 3.5
tonnes) and heavy-duty vehicles (trucks and buses). These standards have
been tightened periodically, typically every four to five years, since they were
first introduced in 1992. Euro 5 regulations are currently in force. The United
States has its own regulations, but work is proceeding to unify the two
systems.
Governments are also looking increasingly at ways of encouraging a shift in
fuel use to alternative fuels that can yield a reduction in climate-destabilising
emissions of greenhouse-gases at least cost. Globally, road transport has
become the second-largest source of emissions of carbon dioxide the
leading greenhouse gas after power generation, accounting for well over
one-fifth of total emissions. Emission standards for CO2 have not yet been
applied.
This chapter draws on the findings of the WLPGA report, LP Gas: Healthy Energy for
a Changing World (WLPGA, 2009).
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
Light-duty vehicle emissions
2.2.1
Regulated pollutant emissions
The main regulated emissions are the following:
Nitrogen oxides (NO and NO2, or NOx).
Particulate matter (PM).
Hydrocarbons (HC), measured as total hydrocarbons (THC) or nonmethane hydrocarbons (NMHC).
Carbon monoxide (CO).
CO, NOx and HC emissions contribute to the creation of ground-level ozone

and photochemical smog, while PM is a known carcinogen and contributor to
respiratory problems. NOx also impairs the lung function in humans,
increasing the incidence of asthma attacks. Because these emissions are
detrimental to local or regional air quality, most studies of this type of vehicle
emissions have focused on tail-pipe emissions.
Autogas performs well in comparison with gasoline and diesel with respect to
regulated emissions because propane and butane are chemically simpler and
purer forms of hydrocarbons that mix easily with air, allowing almost
complete combustion. Data compiled principally from the results of the
European Emissions Test Programme (EETP) completed in 2o04, the most
recent major comparative study of LDV emissions, show that emissions of
NOx the most important of the regulated toxic gases from Autogas are
much lower than from gasoline and diesel, especially for Euro-5 compliant
vehicles (Figure A2.1). Autogas emissions are comparatively even lower for
cold starts, since gasoline needs to be enriched when the engine is cold due
to its poor vaporisation characteristics at low temperatures.
21
Figure A2.1: Regulated emissions from LDVs by fuel (g/km)
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.
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
Non-regulated pollutant emissions
The environmental advantages of Autogas over conventional and other

alternative fuels are even greater with respect to non-regulated emissions.
These include air toxics such as benzene, acetaldehyde, formaldehyde and
22
1,3 butadiene. As the hazards at different concentrations of these pollutants

in the air are not yet fully understood, their emissions are not yet regulated.
A major study of non-regulated toxic emissions carried out by the US
Argonne National Laboratory found that Autogas emissions are lower than
for all of the conventional and alternative fuels, with the exception of CNG
which yields lower benzene and butadiene emissions but higher emissions of
acetaldehyde and much higher emissions of formaldehyde and methanol
(Argonne, 2000a). Autogas emissions of benzene, linked with various
cancers, and butadiene are particularly low compared with gasoline and
diesel.
Evaporative and fugitive emissions of hydrocarbons from motor vehicles and
refuelling facilities are known to make a substantial contribution to total HC
emissions. This is a particular problem with gasoline, due to its volatility.
Because they have completely sealed fuel systems, Autogas vehicles and
pumps have virtually zero evaporative emissions and fugitive emissions are
normally limited to the small release of gas when the fuelling coupling is
attached and removed.
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
Heavy-duty vehicle emissions
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
Figure A2.3: Regulated emissions from HDVs by fuel (g/km)
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.
25
Government policies to promote

alternative fuels
3.1
Principles of alternative-fuel policies
Environmental improvement is the main justification for governments to

promote the use of Autogas and other alternative fuels. Pollution and global
warming caused by rising concentrations of greenhouse gases in the
atmosphere are prime examples of market failure, since the market fails to
put a financial value or penalty on the cost of emissions generated by
individuals or organisations. Air quality and the climate are, in economists
parlance, public goods, from which everyone benefits. Damage done to the
environment is known as an external cost or externality. Governments have a
responsibility to correct these failures, to discourage activities that emit
noxious or greenhouse gases and to make sure that each polluter pays for the
harm he causes to public goods.
Levying charges on polluting activities is effectively a way of internalising
these environmental externalities, although placing an exact financial value
on them is extremely difficult and inevitably involves a large degree of
judgment. A large number of studies have attempted to assess the health
and economic costs of different types of emissions, including greenhouse
gases. The social cost of carbon, for example, is the marginal cost of emitting
one extra tonne of carbon (as CO2) at any point in time. Estimates vary widely
according to the assumptions made and methodological approaches used. A
recent survey of estimates of the cost of carbon averaged $158 per tonne of
CO2, but ranged from just $4/tonne to over $5 500/tonne (Yohe et al., 2005).
In principle, the most economically efficient approach to internalising
external costs is one that relies mainly on financial incentives, i.e. a marketbased approach. In other words, the effective market price of the activity
that gives rise to an environmental externality should be adjusted through
the application of a tax and/or subsidy large enough to reflect the value or
cost of that externality. Once an appropriate fiscal framework is in place,
consumers and producers should be free to make informed economic choices
according to their own preferences. In the case of road transport, that
involves taxing or subsidising transportation in such a way that the financial
costs to end users of the different fuel and vehicle options reflect their
associated environmental costs.
In practice, developing effective transport and energy policies that take
account of environmental externalities is extremely complex even if reliable
quantitative estimates of external costs can be obtained. It is impractical to
apply taxes and subsidies exactly according to actual vehicle usage and the
actual emissions produced during use. And emissions trading schemes are
similarly impractical for fuel use in the transport sector given the large
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
Typology of policies to promote alternative fuels
In practice, there is wide range of options at the disposal of policymakers

within the normal policy-toolbox to promote the supply and use of
alternative fuels, including Autogas. The main approaches that governments
could or do deploy are financial incentives and regulatory measures. Other
measures include support for technology development and public awareness
programmes. These are summarised in Table A3.1 and are discussed below.
3.2.1
Financial incentives
Financial incentives can be directed at the fuels themselves or vehicles that

are able to use them. Fuel incentives the main measure that the countries
surveyed in this report use to promote Autogas can take the form of a lower
rate of excise duty (and/or sales tax) or its complete exemption. In some
cases, commercial vehicles may enjoy a rebate on fuel taxes. These measures
directly reduce the cost of running an alternative fuel vehicle (AFV) vis--vis
gasoline and diesel vehicles and shorten the payback period on converting or
acquiring the AFV. Since differences in excise duty show up in prices at the
pump, the measure is also highly visible, raising public awareness of the
potential cost savings from using alternative fuels. The lower the rates of
duties and taxes relative to other fuels, the bigger the financial incentive to
switch.
27
Table A3.1: Typology of government policies and measures to promote alternative fuels
Fiscal/financial
Regulatory
Other
Excise-duty exemption or rebate
Mandatory sales/purchase
requirements for public and/or private
fleets (with enforcement)
Government own-use of AFVs
Road/registration-tax exemption or
rebate
Vehicle sales-tax exemption or
income/profit tax credit (purchasers
and OEMs)
Standards to harmonise refuelling

facilities
Vehicle conversion standards
Tax credits for investment in

distribution infrastructure and R&D
Coherent and appropriate health and

safety regulations
Grants/tax credits for AFV

conversion/acquisition.
Exemptions from city-driving

restrictions
Information dissemination and public

awareness campaigns
Voluntary agreements with OEMs to
develop and market AFV technologies
Direct funding for research,
development, demonstration and
deployment of AFVs
Rapid depreciation for commercial

purchasers of Autogas vehicles and
owners of distribution infrastructure
Exemption from parking/road-use
charges
Source: Based on WLPGA (2001).
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
Regulatory policies and measures
Governments can strongly influence how quickly alternative fuels and

technologies are adopted through the design of the regulatory framework.
There is a wide range of policies and measures that governments currently
employ to promote the use of alternative fuels.
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
Governments can support the research, development, demonstration and

deployment of alternative-fuel technology either through voluntary
agreements with OEMs and fuel providers or through direct funding of such
activities. Voluntary agreements or collaborative partnerships with industry
are usually seen as an alternative to stringent, mandatory regulations and
punitive fiscal measures.
Other measures include the use of voluntary agreements and programmes
between government and fuel providers and fleet operators. The aim is to
advance public understanding and awareness of the benefits of switching
away from conventional fuels and of the various incentives available to them.
The deployment of AFVs by the government itself can also expand the
market for alternative fuels and set an example to other end users.
Information dissemination and education can also form a key element of
government-incentive programmes for alternative fuels. They may take the
form of regular communications, such as websites or newsletters, to inform
the public of market and technology developments and to indicate how to
apply for subsidies if available.
29
International comparison of autogas incentive policies
International comparison of Autogas

incentive policies
4.1
Fuel taxation and pricing
4.1.1
Comparative taxation of Autogas
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.
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
Comparative pricing of Autogas
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).
Box A4.1: International LP Gas pricing

Propane and butane are traded internationally and within the large North American market on a spot basis (cargo by
cargo) and under term contracts that cover a specified number of cargoes over a specified period. Contract prices are
typically indexed to published spot-price quotations for LP Gas and other oil products. Spot prices and the base
prices in term contracts are determined by market conditions at the time the deal is struck. The primary determinants
of propane and butane prices are crude oil, natural gas and naphtha prices, the local supply and demand balance,
the proximity of the market to supply sources and the types of uses to which LP Gas are put.
Because of the large share of petrochemical demand in total world LP Gas demand and because of the volatility of
demand from this sector, LP Gas prices tend to fluctuate more sharply in the short term than those of oil or natural
gas. In particular, LP Gas prices tend to increase in the summer in the northern hemisphere, when petrochemical and
refinery demand is highest because of increased demand for gasoline. Propane and butane replace naphtha as
feedstock in ethylene plants, as larger volumes of naphtha are diverted to gasoline production in refineries. However,
over the longer term, the bulk prices of LP Gas, crude oil and naphtha tend to move closely in line with each other.
Propane and butane prices are usually very close and also move very closely in parallel.
32
Figure A4.3: Pre-tax pump price of Autogas, 2010 (US$/litre)
Note: Prices are converted to US dollars at average 2010 exchange rates. Pre-tax prices are not
available for India and Russia.
In 2010, the per-litre pump price of Autogas for non-commercial users

(including all taxes) was lower than that of both conventional fuels in all
countries except the United States, where Autogas costs slightly more than
gasoline. In eight of the countries surveyed, Autogas pump prices per litre
were less than half those of gasoline. The price of Autogas as a proportion of
that of gasoline ranged from 26% in Mexico to 100% in the United States,
averaging 55% across all countries (Figure A4.4).
Because diesel is taxed less than gasoline everywhere except the United
Kingdom and the United States, the pump-price differential between
Autogas and diesel is significantly lower than that between Autogas and
gasoline. The price of Autogas was on average 63% that of diesel in 2010. The
ratio was highest in the United States and lowest in Mexico (Figure A4.5).
The share of total taxes in the per-litre pump price of each fuel and the ratio
of Autogas pump prices including all taxes to those of diesel and gasoline are
detailed in Table A4.1.
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
Table A4.1: Automotive-fuel taxes and prices, 2010

Autogas pump price as % prices
of other fuels (including all taxes)
Share of total taxes in price

Autogas
Algeria
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
Autogas vehicle subsidies
The most effective measure other than favourable fuel taxation in

encouraging switching to Autogas is subsidies to the vehicle itself. They take
the form of grants or tax credits for converting gasoline vehicles to run on
Autogas or for purchasing OEM Autogas vehicles. Among the countries
surveyed, the central government and/or local authorities subsidised
gasoline-vehicle conversions or OEM purchases in Algeria, Australia, Canada
(Ontario), France and the United States in 2010. In some cases, subsidies can
effectively cover the entire cost of conversion. Rebates on retail sales tax and
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
Supply-side fiscal or subsidy measures that reduce the tax liability,

investment cost or running costs of fuel providers and/or vehicle converters
or OEMs are used in only two countries. Some US states have introduced
profit-tax credits for part of the construction cost of refuelling stations or
improvements to existing stations so they can provide Autogas or other
alternative fuels. The Japanese government also ran a programme to
promote Autogas distribution, through grants covering 50% of both the cost
of building and the cost of running Autogas refuelling stations up to a fixed
ceiling; the programme ended in March 2012.
Fleet-vehicle purchase mandates or Autogas-fuelled public transport
programmes are used in eight countries: Australia, Canada, China, France,
India, Italy, Mexico and the United States. Guangzhou in China has one of the
biggest programmes: all of the citys 18 000 taxis and 90% of its 8 000 buses
have been converted to run on Autogas. A large proportion of buses in a
number of other major cities have also been converted to Autogas. Mandates
for AFVs, including those using Autogas, have been widely used in the United
States too. Under the Energy Policy Act of 1992, 75% of new LDVs acquired
by certain federal fleets must be alternative fuel vehicles (AFVs). A minimum
share of certain state government and alternative fuel-provider fleet vehicle
purchases must also be AFVs. Additional requirements for federal fleets were
included in the Energy Independence and Security Act of 2007, including
requirements to acquire low-emitting vehicles.
Autogas vehicles along with other with other clean AFVs enjoy
exemptions from city or highway-driving restrictions imposed on peakpollution days in several European cities, including Rome, Athens and Paris.
In some US cities, Autogas vehicles are given access to dedicated lanes. In
the United Kingdom, Autogas vehicles were exempt from the London
congestion charge, though this exemption now applies to cars with low CO 2
emissions only. Most industrialised countries directly fund and manage
transportation and automotive fuel R&D programmes.
36
Other measures that have been or are being used by governments to

promote Autogas use include the use of voluntary agreements and
programmes between governments and fuel providers and fleet operators.
For example, the US Clean Cities Program, run by the Federal Department of
Energy, is aimed at helping city authorities seek voluntary commitments
from fuel providers to expand the distribution network and fleet operators to
increase their purchases of alternative fuel vehicles. The deployment of
Autogas vehicles by the government itself is also used to expand the market
for Autogas and set an example to other end users. Information
dissemination and education programmes for Autogas and other alternative
fuels are used in several other countries. In the United Kingdom, for example,
the government set up a campaign, now called Drive LPG, to improve the
availability of information and to promote the benefits and opportunities
associated with using LPG-fuelled vehicles. The campaign is run by the LP
Gas Association.
Table A4.2 summarises the principal measures deployed in the countries
surveyed in this report. The most commonly used measure to support
Autogas is a tax exemption or large rebate relative to conventional fuels.
Table A4.2: Summary of Autogas incentive policies in countries surveyed, 2010
Fuel tax exemption

or large rebate1
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
Effectiveness of autogas incentive policies
Effectiveness of Autogas incentive

policies
5.1
Autogas share of the automotive fuel market
The effectiveness of Autogas incentive policies varies considerably among

the countries surveyed in this report. The share of Autogas in total
automotive-fuel consumption ranges from a mere 0.1% in the United States
to just over 18% in Turkey (Figure A5.1). The only countries other than Turkey
where Autogas accounts for more than 10% of the fuel market are Korea and
Poland. The share is less than 1% in Germany, India, China and France,
though it has been growing in recent years in the first three countries and
rebounded in 2010 in France.
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
Note: Log scale.
Comparative competitiveness of Autogas

The market penetration of Autogas depends largely on how competitive the
fuel is against gasoline and diesel in other words, how financially attractive
it is for an end user to switch to Autogas. This largely depends on the cost of
converting the vehicle (or the cost of a dedicated OEM vehicle compared to a
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, 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 extent to which
government incentives lower the initial expenditure and fuel costs is critical
to the payback period. In practice, the payback period generally has to be
less than two to three years to encourage commercial vehicle owners to
switch; private individuals often demand a quicker return on their
investment.
We have estimated, for all the countries surveyed, the distances over which a
typical LDV of recent vintage would need to travel before it becomes
competitive with similar gasoline and diesel vehicles. The methodology and
assumptions used for this analysis are described in Box A5.1. The results are
summarised in Table A5.1 (the detailed results by country can be found in
Part B).
40
Box A5.1: Methodology for calculating the comparative competitiveness of Autogas

In order to analyse the role inter-fuel competition plays in Autogas demand, we have calculated indicative break-even
distances for non-commercial Autogas-fuelled light-duty vehicles (LDVs) compared with both gasoline and diesel
vehicles for all 18 countries surveyed. This involved compiling information on current pump prices and effective
differences in actual vehicle conversion and acquisition costs for Autogas and diesel relative to gasoline vehicles,
taking account of any grants or tax rebates currently available (including any differences in vehicle registration and
annual road taxes). The cost of running a gasoline vehicle is the baseline against which the cost of running Autogas
and diesel vehicles is compared.
To allow cross-country comparisons, uniform assumptions about fuel and vehicle types were adopted. For all
countries, a typical passenger car of recent vintage was assumed (a five-door saloon or hatchback) with the same
power rating for each fuel. Mileage differences due to the lower per litre energy content of Autogas and engine
performance were also taken into account. The diesel vehicle was assumed to consume 22% less fuel per kilometre
on a volume basis than the gasoline vehicle, while the Autogas vehicle was assumed to consume 25% more per
kilometre than the gasoline vehicle. No differences in fuel specifications and operating characteristics between
countries were taken into account, because of the difficulty in obtaining reliable information for each country (notably
the propane-butane mix of Autogas, which varies in practice across seasons and countries).
There is considerable variation in the competitiveness of Autogas against

each of the other fuels among the countries surveyed. Converted vehicles
eventually break even with gasoline vehicles in all countries except Canada,
Russia and the United States (Figure A5.3). The breakeven distance is
nonetheless above 150 000 km in Japan. In all other countries, the breakeven
distance is less than 75 000 km. Autogas is most competitive in France, where
a converted Autogas vehicles is always the lowest cost fuel/vehicle option,
regardless of distance travelled. This is because government grants (which
were withdrawn in 2011) cover the entire conversion cost and because per
kilometre fuel costs are lower than those of gasoline (and diesel), even
allowing for its lower mileage. In 12 of the countries surveyed, the breakeven
distance against gasoline is under 50 000 km or about three years of driving
for an average private car owner. The equivalent breakeven distance for OEM
Autogas cars is generally higher, because it is more expensive to buy an OEM
than convert a gasoline car in most cases.
The picture is less straightforward when Autogas is compared with diesel.
Converted Autogas vehicles are always competitive against diesel in nine
countries, where both per-kilometre fuel costs are lower and Autogasconversion costs net of any grants are less than the additional cost of buying
a diesel vehicle. In four countries, the running costs of diesel are lower than
for Autogas, so diesel eventually breaks even against Autogas. This is the
case in India, Russia, Turkey and the United States. In India, however, diesel
only becomes competitive against Autogas at over 60 000 km. In four
countries Algeria, Australia, Canada and Japan Autogas is never
competitive against diesel.
41
Table A5.1: Breakeven distance for a non-commercial Autogas LDV, 2010 (thousand km)
Autogas conversion against
Diesel
Autogas OEM against
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
Impact of Autogas competitiveness on

automotive-fuel market penetration
There is a very strong correlation between how competitive Autogas is

against other fuels and how successful Autogas has been in penetrating the
automotive-fuel market. Figure A5.4 plots the market penetration of
Autogas against the competitiveness of Autogas (based on a converted
gasoline car) vis--vis gasoline for all countries. Autogas use is generally
higher in countries where the break-even distance is low, especially against
gasoline. For example, Korea, Turkey and Poland have both the highest rates
of Autogas penetration and low breakeven distances. At the other extreme,
Autogas is least competitive in Canada and the United States, where
Autogas accounts for a small share of total automotive-fuel consumption.
The correlation for diesel is weaker, largely because Autogas is always
competitive against that fuel in almost half of the countries.
42
Figure A5.3: Autogas breakeven distance against gasoline, 2010
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
Impact of non-financial incentives
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:
Government policy commitment: The Autogas market has tended to

develop more quickly where the government has shown a strong, longterm policy commitment in favour Autogas. Frequent changes of policy,
including shifts in taxation, deter end users, equipment manufacturers
and fuel providers from investing in Autogas. For example, a proposal to
impose an excise duty on Autogas in Australia in 2003 quickly led to a
sharp drop in conversions and fuel sales. In contrast, the long-term
commitment by the German government in 2006 to keeping Autogas
taxes low has been an important factor in the take-off of Autogas
demand there.
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.
Restrictions on diesel vehicles: Local and central government

environmental restrictions on the use of diesel vehicles have been an
important factor behind the success of Autogas in Korea and Japan.
Availability of equipment and fuel: In some countries, Autogas has

struggled to penetrate the fuel market where car makers have been
reluctant to market OEM models or where there is a limited number of
refuelling sites selling Autogas. A lack of OEM vehicle availability has
been a major barrier to market development in the United States.
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

6.1
The rationale for promoting Autogas
For environmental and economic reasons, Autogas remains the most

attractive alternative automotive fuel for countries looking to tackle urban air
pollution and to curb rising emissions of greenhouse gases. In most parts of
the world, these problems are getting worse as demand for mobility
whether for transporting people or goods grows inexorably with increasing
economic activity and prosperity. Urgent action is needed in many places,
especially in Asia. Draconian measures to curb mobility are politically and
socially unacceptable. Breakthrough technologies under development today,
such as electric vehicles, hold out the prospect of much lower or even zero
emissions, but their widespread commercialisation is still several years away.
As a result, the most practical approach in the short-term to reducing
emissions is by encouraging people and businesses to switch to cleanerburning fuels that are already commercially available.
Autogas outperforms conventional fuels and most other alternative
automotive fuels for local and regional environmental benefits. It can also
play an important role in mitigating climate-destabilising greenhouse-gas
emissions until such time as ultra-low or zero-emission vehicle technologies
are commercialised on a large scale. The development of Autogasdistribution infrastructure could also later provide the basis for on-board
hydrogen production for fuel cells using Autogas as the primary input.
Autogas makes economic as well as environmental sense because its raw
material costs are competitive and installing the distribution infrastructure
costs less than for other alternative fuels. Most gasoline-powered LDVs,
including commercial vans and taxis, are highly amenable to conversion to
Autogas. OEM Autogas buses have operated for many years in a number of
cities around the world, and improved Autogas-fuelled engines for buses and
trucks are now available. Yet there are obstacles to market take-off and
development. In practice, Autogas can only be successful if there is a
concerted effort on the part of all stakeholders vehicle manufacturers and
converters, Autogas suppliers and governments to make switching
attractive to end users.
The loss of revenue from lower taxation of Autogas fuels or vehicle sales may
be used by the government as an excuse for not providing fiscal incentives
especially in countries where fuel-tax revenues make up a large share of the
overall government budget. In practice, however, any reduction in taxes from
automotive-fuel sales can be easily offset by marginal increases in taxes on
gasoline and diesel.
45
6.2
Critical success factors for Autogas market

development
In designing Autogas incentives, policymakers need to take account of the

critical success factors behind the development of a sustainable Autogas
market. The analysis of the preceding two chapters demonstrates clearly
that the most important factors are the financial attraction of switching to
potential Autogas-vehicle owners, i.e. the speed of payback on the initial
investment, and the achievement of critical market mass.
Fuel taxes and vehicle grants are the primary determinants of the financial
benefit to vehicle owners of switching to Autogas. In practice, the crucial
variable to vehicle owners and operators in their choice of fuel is the speed of
payback on the initial additional cost of converting a gasoline vehicle to run
on Autogas or the higher price of an OEM vehicle relative that of a new
gasoline or diesel vehicle. The payback period has to be sufficiently short to
justify the investment and to compensate for the inconvenience associated
with Autogas, notably the loss of space in the boot/trunk and the more
limited availability of refuelling stations in some countries and regions.
Even where reasonably strong financial incentives exist, Autogas use will not
necessarily take off until critical market mass is achieved:
The market needs to be large enough to demonstrate to potential

Autogas users and fuel providers that the fuel is safe, reliable and costeffective alternative to conventional fuels. The more Autogas vehicles
there are on the road, the more confidence other vehicle owners will
have to switch fuels.
Autogas must be widely available. Lack of refuelling stations is a major

impediment to persuading vehicle owners to switch to Autogas, even
where there is a strong financial incentive.
The Autogas market must be big enough to support a viable network or

properly-trained mechanics to convert and maintain Autogas vehicles
and ensure the availability of spare parts and equipment.
The role of the government in giving an initial strong impetus to the

simultaneous development of demand and supply infrastructure in
collaboration with all stakeholders is vital. Favourable taxation of Autogas
relative to gasoline and diesel is a necessary but not always a sufficient
condition for establishing and sustaining an Autogas market. Other
government incentives may be necessary where the market has not yet
reached critical mass. Government grants for vehicle conversions for private
individuals and fleets have been particularly successful in kick-starting
Autogas markets in some instances. Road and vehicle registration and
purchases taxes that favour Autogas vehicles can also be an effective policy,
with relatively low implementation costs and few negative side-effects.
Conversion of public vehicle fleets to Autogas is also an effective way of
demonstrating the benefits of Autogas and driving the development of
distribution infrastructure.
46
Technical and safety standards are another important area of responsibility

for governments in partnership with LP Gas suppliers, vehicle converters and
OEMs. It is essential for the authorities to lay down and enforce harmonised
operating standards for aspects of both Autogas distribution and vehicle
equipment, including installation. Poor-quality conversions can undermine
engine and emission performance and jeopardise sustainable development
of the market. The European Union has addressed this concern with the
adoption of ECE Regulation 67.01. Another issue concerns refuelling nozzles
at service stations, which must be compatible with the vehicle connector.
Differences between and even within countries was initially a significant
barrier to the development of the European Autogas market. The
development of a new standardised filling system designed by Autogas
providers and the major OEMs helped to resolve this problem and support
the development of the market.
Safety should be an overriding concern for policymakers everywhere. Fuel
providers and end users need to be reassured that the transportation,
handling and storage of Autogas pose no safety risks. But the drafting and
implementation of safety regulations specific to Autogas need to be based
on an objective assessment of risk. In many countries, regulations still limit
unnecessarily access and parking of Autogas vehicles, the siting of refuelling
stations and the on-site location of dispensers. Studies have shown that
many of these restrictions are unjustified. For example, some countries do
not allow the positioning of Autogas dispensers next to gasoline and diesel
pumps. This raises the stations capital and operating costs and undermines
the customers confidence in the safety of Autogas refuelling. Experience in
countries where this is permitted, such as France, the Netherlands and the
United Kingdom, shows that there is little risk if good equipment and
appropriate procedures are in place.
In most cases, there is no need for policymakers to draw up technical and
safety standards and regulations from scratch, since several countries have
developed effective frameworks based on many years of experience of
Autogas use. For example, the European Standards Organisation, CEN, has
drawn up detailed minimum safety requirements for Autogas vehicles, fuel
and storage systems and installation procedures as well as fuel distribution.
The European Autogas industry is working to harmonise technical and safety
standards through EU regulations.
6.3
Formulating an effective Autogas strategy
There is no single model or approach to formulating and implementing a

government programme of incentives to promote the development of a
sustainable Autogas market. The appropriate strategy for each country
depends on specific national circumstances. These include budgetary
considerations, which might limit available funds for subsidies, the
seriousness of local pollution problems, fuel-supply and cost issues, the stage
of development of the Autogas market and the prevailing barriers to fuel
switching, including restrictive regulations and the local cost of vehicle
conversions.
47
Whatever the circumstances, however, experience in the countries surveyed

in this study has clearly shown that the single most important measure to
making Autogas an attractive fuel to vehicle owners is favourable fuel-tax
treatment compared with conventional fuels. At a minimum, taxes should be
set on an energy-content basis and should take account of the environmental
benefits of encouraging switching to Autogas. But this is not always
sufficient. Complementary policy initiatives, including grants and tax credits
to lower the cost of vehicle conversions, and regulatory measures may also
be needed especially during the early stages of market development.
Vehicle incentives are particularly important where fuel taxes generally are
low, limiting the scope for savings on running costs.
Policy stability and a strong, long-term commitment by the government to
achieving environmental-policy objectives are crucial to success in promoting
the development of alternative-fuel markets. Stakeholders need to be given
clear advance warning of any major shift in policy. Without policy stability,
coherence and consistency, neither fuel suppliers, nor OEMs nor consumers
will be confident that they will be able to make a reasonable return on the
investments required to switch fuels.
48
Part B: Country surveys
PART B: COUNTRY SURVEYS
49
Algeria
Algeria
1.1
The Algerian government has pursued a policy of promoting Autogas since

the 1980s, to take advantage of its large production of LP Gas from refining
and natural-gas processing, to reduce the need to import diesel and to tackle
urban pollution. Autogas consumption grew rapidly in the early 2000s, but
has slowed in recent years, reaching 350 000 tonnes in 2010 double the
level of 2000 (Figure B1.1). Autogas currently accounts for almost one-fifth of
total national consumption of LP Gas and about 6% of total automotive-fuel
use.
Figure B1.1: Autogas consumption and vehicle fleet Algeria
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
The Algerian government actively promotes the use of Autogas, having

targeted the fuel to reach 20% of total road-fuel sales by2020 (APRUE, 2011).
The principal measure is a substantial price differential to gasoline and diesel.
The government fixes both the wholesale and retail prices of all automotive
fuels. Pump prices and excise taxes on Autogas and diesel have not changed
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.
Table B1.1: Automotive-fuel prices and taxes Algeria (Algerian dinar/litre)

2005
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
The government also encourages Autogas use through a vehicle-conversion

programme, aimed at increasing the Autogas vehicle fleet by 170 o00
vehicles between 2010 and 2014. In late 2009, the automotive-fuel retail
company, NAFTAL (a wholly-owned subsidiary of the national oil company,
Sonatrach), signed an agreement with conversion companies and car
importers on working together to boost conversions. Earlier in 2009, APRUE,
the national agency for the rational use of energy, and BDL, the local
development bank, signed an agreement to make available zero-interest
loans to car owners to finance vehicle conversions. The scheme, known as
PROP-AIR, is funded with 98 million dinars from the National Energy
Efficiency Fund. In addition, in 2008, a scheme was launched to convert 1 000
taxis in Algiers by end-2011 to Autogas by making available grants to taxiowners. The scheme, initiated by NAFTAL, is funded by the Environment
51
Algeria
Ministry, Sonatrach and Ghazel (a conversion company). From 2011, Autogas

vehicles are exempt from the annual road tax (vignette).
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.
Figure B1.2: Running costs of a non-commercial LDV, 2010 Algeria
52
Australia
Australia
2.1
Australia has a long history of Autogas use. The Commonwealth government

has encouraged Autogas use since 1981 for reasons of energy security the
country is a large producer and exporter of LP Gas and air quality. Today,
Australia has the seventh-largest Autogas market in the world and the most
extensive retail distribution network, with 3 200 refuelling sites throughout
the country serving an estimated 655 000 cars at end-2010. More than half of
all service stations in Australia sell Autogas. Victoria has the largest Autogas
market. Autogas use is particularly high among taxis, 18 000 of which or
over 95% of the total taxi fleet run on Autogas. Autogas accounts for well
over half of the countrys LP Gas consumption.
Following a period of contraction through the 2000s partly the result of
uncertainty over plans to increases taxes on Autogas and a significant
improvement in fuel economy sales of rebounded in 2010, reaching almost
1.15 million tonnes (Figure B2.1). Autogas use is now equal to close to 5% of
total road-fuel consumption. This market growth has occurred thanks to a
combination of a zero excise tax on Autogas and generous vehicleconversion grants (see below). The overall hike in international fuel prices in
recent years, which has increased in absolute terms the financial incentive to
use Autogas, has also helped to boost Autogas vehicle and fuel sales. The
introduction of an excise tax in 2011 is expected to slow the growth of
Autogas sales in the coming years (see below).
Figure B2.1: Autogas consumption and vehicle fleet Australia
53
Australia
2.2
The Commonwealth government has traditionally supported the

development of the Autogas market primarily through favourable taxation.
Autogas and other alternative fuels (including ethanol, LNG and CNG)
currently benefit from a complete exemption from excise taxes. Both diesel
and gasoline are subject to an excise tax of 38.1 Australian cents/litre (the tax
on gasoline was lowered in 2005). Non-commercial users of all types of
transport fuels are obliged to pay a 10% Goods and Services Tax (GST) that
was introduced in 2000; the tax is refunded for commercial users. The pump
price of Autogas including GST is currently around 40% that of gasoline and
47% that of diesel (Table B2.1). The price differentials in absolute terms have
increased sharply in recent years because of large increases in pre-tax
gasoline and diesel prices.
Table B2.1: Automotive-fuel prices and taxes Australia (A$/litre)

2005
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.
Although Autogas is currently excise-tax free, a tax was introduced on

Autogas (as well as CNG and LNG) on 1 December 2011. The tax was
originally due to come into effect on 1 July, but Parliament decided in June
2011 to delay its introduction by five months to give motorists more time to
adjust. The tax will initially be 2.5 cents/litre (i.e. less than 7% of that on
gasoline and diesel) rising each year on 1 July by 2.5 cents to 12.5 cents in
2015 (when the tax will be equal to 33% of that on gasoline and diesel, which
will not change).
54
Australia
The impact of the introduction of excise tax on Autogas will be softened by

grants that have been made available for the conversion of existing vehicles
and for OEM Autogas vehicle sales. The Commonwealth government
introduced a subsidy in 2006 for private motorists and businesses for vehicles
of less than 3 500 kilogrammes (The LPG Vehicle Scheme). The scheme was
modified in 2009, lowering the subsidy for conversions but increasing the
subsidy for OEM purchases. Currently, the subsidy amounts to A$1 250 for a
conversion (down from A$2 000 in 2008 and falling to A$1 000 in July 2012)
and A$2 000 for an OEM vehicle (up from A$1 000 before November 2008).
Since 1 July 2011, the scheme has been capped at 25 000 claims per year for
the duration of the scheme to 2014. The Energy Grants Credit Scheme, which
offered business tax rebates on diesel, Autogas and other alternative fuels
was scrapped in July 2010.
Most states also have or have had policies to promote Autogas. For example,
the governments of Victoria and New South Wales and several councils
across the country mandate that a proportion of new government-fleet LDVs
must be able to run on Autogas. The Western Australian government used to
provide a subsidy for conversions to Autogas, amounting to A$1 000 in 20092010, under a long-running subsidy scheme; the scheme was stopped in July
2010.
In December 2011, the Australian Government released the Strategic
Framework for Alternative Transport Fuels (AGDRET, 2011). Developed in
consultation with industry, government and other stakeholders, the
framework establishes a long-term approach to encouraging the adoption of
Autogas and other alternative transport fuels in Australia, including
identifying specific actions needed to address identified barriers to uptake
and raising public awareness about the benefits of alternative fuels.
Recommendation include standardising regulations concerning Autogas
conversions kits across states and territories and internationally, and
addressing consumer perceptions that Autogas vehicle technology is
outdated.
2.3
Thanks to the excise-duty exemption and vehicle subsidies, Autogas (both

for conversions and OEM cars) breaks even with gasoline at about 24 000 km
little more than one year of driving for typical private owners (Figure B2.2).
The vehicle cost for conversions and OEM cars is effectively the same at
around A$1 000 as the relatively higher cost of OEM cars is entirely offset
by the bigger subsidy that is now available. The average cost of converting a
gasoline-fuelled LDV to run on Autogas is currently A$2 500 (including GST)
and the incremental cost of dedicated OEM dual-fuelled vehicle about
A$3 000. Diesel currently breaks even with gasoline at close to 100 000 km,
and is never competitive with Autogas.
The Autogas breakeven distances are set to rise with the introduction of and
progressive increase in the excise tax on Autogas, but Autogas will still
remain competitive with gasoline and diesel for as long as vehicle subsidies
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.
Figure B2.2: Running costs of a non-commercial LDV, 2010 Australia
56
Belgium
Belgium
3.1
The Autogas market in Belgium has contracted sharply in recent years,

despite a relatively large tax and price differential relative to gasoline and
diesel (see below). Autogas consumption peaked at just over 100 000 tonnes
in 2001, remained flat at between 80 000 and 100 o00 tonnes through to 2007
and then slumped to about 60 000 tonnes in 2010 (Figure B3.1). The share of
Autogas in total automotive-fuel consumption has correspondingly fallen by
almost half since 2000, to little more than o.7% in 2010. At end-2010, there
were an estimated 50 000 Autogas vehicles on the road barely half the
number in 2002 and 640 refuelling stations in Belgium (about one-third of
all stations), a third of which are operated by Primagaz Belgium. Most
Autogas cars are conversions; OEM sales remain small.
Figure B3.1: Autogas consumption and vehicle fleet Belgium*
* 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.
Table B3.1: Automotive-fuel prices and taxes Belgium (euros/litre)

2005
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
Figure B3.2: Running costs of a non-commercial LDV, 2010 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.
Figure B4.1: Autogas consumption and vehicle fleet Canada
The majority of the estimated 60 000 Autogas vehicles in use in Canada

today are commercial high-mileage vehicles, mainly converted vans, taxis
and school buses. Alberta, Ontario and British Columbia have the largest
Autogas markets. By end-2010, Autogas was available at about 2 500 filling
stations across Canada a very high number relative to the number of
vehicles in use.
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,
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.
Table B4.1: Automotive-fuel prices and taxes Canada (CA$/litre)

2005
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
* Includes provincial taxes.
In practice, Autogas receives limited policy support in Canada. The

Alternative Fuels Act 1995 requires that three-quarters of all vehicles
purchased by the federal government be capable of operating on one of a
range of alternative fuels, including Autogas, where it is cost-effective and
operationally feasible. However, in practice, most of the AFVs purchased are
gasoline-fuelled vehicles capable of running on blends of gasoline and
ethanol with content of the latter of up to 85%; in 2009/2010, only two
federal vehicles out of a total fleet if 32 632 were running on Autogas
(Treasury Board of Canada Secretariat, 2010). A federal government grant
for Autogas conversions of up to CA$400 was discontinued in 1991.
In Ontario, Autogas vehicles used to enjoy retail sales tax relief of up to
CA$750 (CA$250 less than the relief available for other AFVs). In addition, the
fuel-conservation tax paid on new passenger cars or sports utility vehicles
(bought or leased) was refundable for vehicles that could run exclusively on
61
Canada
an alternative fuel. These rebates ended in 2010 when federal and provincial
sales taxes were harmonised.
4.3
At present, Autogas is not a financially-attractive alternative to either diesel

or gasoline in Canada because of unfavourable taxation policies and a lack of
incentives to convert or buy OEM Autogas vehicles. Conversion costs, at
around CA$3 ooo for a typical 4-cylinder gasoline-fuelled vehicle are also
relatively high in Canada, further undermining the competitiveness of
Autogas. Even allowing for the sales-tax rebate on conversions costs (and the
full costs of an OEM purchase), Autogas is never competitive with either of
the other two fuels. By contrast, diesel becomes competitive with gasoline at
about 80 000 km (Figure B5.2). This explains the long-term decline in
Autogas use in Canada.
Figure B4.2: Running costs of a non-commercial LDV, 2010 Canada (Ontario)
Note: takes into account a sales tax credit of up to CA$750.
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.
Figure B5.1: Autogas consumption and vehicle fleet China
5.2
The Chinese government started to promote Autogas nationally from 1998,

to deal with worsening urban pollution problems. As part of this scheme, a
programme to promote alternative fuels including Autogas in a dozen
cities was launched. The largest programme was in Guangzhou city. Autogas
was already growing in Hong Kong. In 2001, Autogas was introduced to
more Chinese cities and nine were selected to carry out field trials for
Autogas use in cars (Beijing, Shanghai, Chongqing, Haikou, Xian, Harbin,
Urumqi, Shenzhen and Mianyang). Autogas was introduced in 11 more big
cities in 2008. The total number of cities promoting Autogas reached 25 by
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).
Table B5.1: Automotive-fuel prices and taxes China (yuan/litre)

2005
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
Based on average fuel prices, a converted non-commercial Autogas LDV

vehicles breaks even with gasoline at just over 50 000 km, based on an
Autogas conversion cost of 4 500 yuan (500 euros). Autogas is always
1
www.worldlpgas.com/gain/autogas-is-best/the-development-of-chinas-auto-lpgindustry/
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.
Figure B5.2: Running costs of a non-commercial LDV, 2010 China
65
France
France
6.1
The Autogas market in France shrank steadily through the 2000s.

Consumption climbed briskly to almost 220 000 tonnes in 2000, but then fell
back sharply to just 110 000 tonnes in 2009, because of changing policies and
some highly publicised accidents involving Autogas vehicles, which
undermined public confidence in their safety. Consumption rebounded to
around 120 000 tonnes in 2010 (Figure B6.1). Autogas currently accounts for
around 0.3% of total automotive-fuel use. The number of Autogas vehicles
also declined progressively over the last decade, but jumped in 2010 to about
180 000 as a result of over 60 000 new Autogas registrations (conversions and
OEM vehicles). This resulted from of an increase in the price advantage of
Autogas over gasoline at the pump and the announcement by the
government that the tax credit for Autogas vehicles would be scrapped at the
end of the year. This points to significantly higher Autogas use in 2011.
However, Autogas vehicle registrations have since fallen heavily, implying
that the surge in demand may prove short-lived. Several carmakers,
including Dacia, Fiat, Lada, Opel, Piaggio and Renault, market OEM Autogas
vehicles in France. At end-2010, there were almost 1 800 refuelling stations.
Figure B6.1: Autogas consumption and vehicle fleet France
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
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.
Table B6.1: Automotive-fuel prices and taxes France (euros/litre)

2005
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
Autogas Updates, July 2010. Available at

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/autogas-updatesjuly2010-2.pdf
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
Figure B6.2: Running costs of a non-commercial LDV, 2010 France
Note: Assumes 100% car registration tax rebate.
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.
Figure B7.1: Autogas consumption and vehicle fleet Germany
7.2
The German federal government supports the use of Autogas, largely

through fuel tax incentives. Since the completion in 2003 of a major reform of
energy taxation aimed at introducing ecological taxes, the rates of excise tax
on Autogas, gasoline and diesel have been constant. The rate of tax on
Autogas is 9.2 euro cents per litre well below the rate of 47 cents levied on
diesel and 65.5 cents on gasoline. In absolute terms, the price differentials
per litre between Autogas and gasoline, as well as between Autogas and
diesel, are among the biggest of the countries surveyed for this report. In
2008, the German Bundestag (parliament) adopted an energy tax law that
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.
Table B7.1: Automotive-fuel prices and taxes Germany (euros/litre)

2005
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
There are no vehicle-related incentives for Autogas in Germany, as the

government considers that the fuel-tax advantage is a sufficiently powerful
incentive. In 1993, the federal government issued a non-binding ordinance
lifting restrictions on parking by gas-fuelled vehicles in underground garages
and multi-storey car parks. However, some restrictions remain at the state
(Lnder) level; in Bremen and the Saarland, for example, a parking ban on
Autogas vehicles is still, officially, in force.1
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.
Figure B7.2: Running costs of a non-commercial LDV, 2010 Germany
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.
Figure B8.1: Autogas consumption and vehicle fleet India
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
diesel and gasoline. The Indian government recently deregulated Autogas

retail prices, having previously done the same with gasoline prices. Oil
marketing companies are now free to revise their Autogas prices every
month in line with international prices, though they have seek permission
from the Ministry of Oil if they want to revise their gasoline prices. Diesel
prices are still controlled and subsidised. In 2010, Autogas prices at the pump
averaged 33 rupees per litre equal to around 63% of the gasoline prices and
80% of the diesel price (Table B8.1). The prices of CNG the other main
alternative fuel in India have increased more rapidly than those of Autogas
over the last year or so, undermining its potential as a competitor to
Autogas; the governments policy is to prioritise the use of natural gas in
power generation and fertilizer manufacturing.
Table B8.1: Automotive-fuel prices and taxes India (rupees/litre)

2005
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
Several Indian cities, including Ahmedabad, Bangalore, Chennai, Hyderabad

and Kolkata, have also introduced measures to encourage or mandate the
use of Autogas and other alternative fuels for reasons of local air quality. For
example, Bangalore introduced a green tax on older vehicles in 2002, payable
each year on renewal of the annual vehicle licence, and offers a subsidy of
around 2 000 rupees to owners of three-wheeler auto-rickshaws to help
cover the cost of conversion to Autogas; nearly 75 000 rickshaws have
already been converted under this programme.1 Kolkata and Chandigarh
have also launched initiative to replace polluting vehicles with AFVs. In
1
Autogas Updates, July 2010. Available at

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/autogas-updatesjuly2010-2.pdf
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.
Figure B8.2: Running costs of a non-commercial LDV, 2010 India
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.
Figure B9.1: Autogas consumption and vehicle fleet Italy
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
Renault sold in Italy in 2009 were Autogas-fuelled.1 The number of refuelling

sites has grown to almost 800 about 15% of all service stations in 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).
Table B9.1: Automotive-fuel prices and taxes Italy (euros/litre)

2005
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
The Italian government encourages Autogas and other clean vehicles in a

number of other ways. Up to 2009, grants were available for OEM Autogas
vehicle purchases or conversions (on top of a car-scrappage scheme
introduced in 2009 as part of a broader economic stimulus packages). These
amounted to 1 500 to 3 500 for an OEM LDV purchase (depending on CO2
emissions) and 350 to 500 for a conversion. In addition, a grant of 4 000
was offered for commercial HDV purchases, conditional on scrapping an old
vehicle. For budgetary reasons, these incentives were stopped in 2010, but
http://www.lpgasmagazine.co.uk/autogas/European-Lpg-Autogas-Demand-MayTriple.htm
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
In 2010, the large fuel-tax advantage over gasoline resulted in a breakeven

distance against gasoline of 47 000 km for both OEM and converted LDVs
equal to about two-and-a-half years of driving (Figure B9.2). The breakeven
distance against diesel is higher, at around 62 000 km. The costs of
conversion and OEM acquisition are roughly the same, at around 2 000.
These breakeven distances were significantly lower in 2009 thanks to the
generous financial incentives that were available them and will be lower
again in 2011 with the reintroduction of incentives. Based on 2010 fuel prices
and vehicle costs, the breakeven distance of Autogas conversions is now less
than 40 000 km against gasoline and only 25 000 km against diesel. This
demonstrates very clearly the vital role that vehicle incentives, alongside
favourable fuel taxes, play in stimulating interest in Autogas.
Figure B9.2: Running costs of a non-commercial LDV, 2010 Italy
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.
Figure B10.1: Autogas consumption and vehicle fleet Japan
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
The Japanese government has maintained lower excise duties on Autogas

than on diesel and gasoline for many years, though the size of the
differentials is large enough to incentivise the use of Autogas only in highmileage vehicles. The tax on Autogas, which has not changed for more than a
decade, is about one-third the level of that on diesel and less than a fifth of
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.
Table B10.1: Transport-fuel prices and taxes Japan (yen/litre)

2005
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
The Japanese government, under a programme managed by the Japan LP

Gas Association, used to provide grants under a programme launched in April
2003 covering either the cost of the difference in purchase price between a
diesel car and an Autogas OEM car, or the cost of converting a diesel car to
run on Autogas. The grant was set at 50% of the incremental cost and was
subsequently capped at 100 000 (US$1 2500) for a light-duty van, small
truck or station wagon and 250 000 (US$3 125) for a normal truck or bus.
This programme, which attracted limited interest as the cost of converting
diesel vehicles is very high, ended in March 2012. A lower rate of local sales
tax (1.1% compared to the usual rate of 3%) is also applied to OEM Autogas
vehicle purchases when accompanied by the scrapping of a diesel vehicle.
The government also established a programme to promote Autogas
distribution, which is also managed by the Japan LP Gas Association, through
grants covering 50% of both the cost of building and the cost of running
Autogas refuelling stations. The construction subsidy is capped at
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.
Figure B10.2: Running costs of a non-commercial LDV, 2010 Japan
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.
Figure B11.1: Autogas consumption and vehicle fleet Korea
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).
Table B11.1: Automotive-fuel prices and taxes in Korea (won/litre)

2005
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
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.
Autogas Updates, November 2010. Available at

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/autogas-updatesnov2010-2.pdf
84
Korea
Figure B11.3: Running costs of a non-commercial LDV, 2010 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.
Figure B12.1: Autogas consumption and vehicle fleet Mexico
Autogas accounts for just under 2% of total automotive-fuel consumption,

down from almost 4% in the early 2000s. The number of Autogas vehicles
has similarly declined in recent years, to around 550 000 at the end of 2010.
Most vehicles are old converted gasoline cars, most of them operating in the
northern and central-western regions (Mexican Ministry of Energy, 2008).
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.
Table B12.1: Transport-fuel prices and taxes Mexico (pesos/litre)

2005
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
Assuming an average conversion cost for a relatively old vehicle of about

15 000 pesos ($1 300), Autogas becomes competitive with gasoline at around
62 000 km based on 2010 prices (Figure B12.2). The conversion cost for
newer vehicles using more sophisticated fuel systems is estimated at over
20 000 pesos and as much as 30 000 pesos for some vehicles. The higher cost
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.
Figure B12.2: Running costs of a non-commercial LDV, 2010 Mexico
88
13
Netherlands
Netherlands
13.1
The Netherlands has the fourth-largest Autogas market in the European

Union after Poland, Italy and Germany, with consumption in 2004 running at
an estimated 330 000 tonnes equal to 3.1% of total road fuel use (Figure
B13.1). Autogas consumption declined steadily over the first half of the
2000s, but recovered in 2008 and has held steady since (see below). The
Dutch government has encouraged the use of Autogas and LP Gas generally
for many years mainly through favourable fuel taxes because the country,
with a large refining industry, used to be a major producer and exporter of
the fuel. The country is now a net importer of LP Gas. The rationale for
encouraging Autogas now is purely environmental. At end-2010, there were
just over 260 000 Autogas vehicles in use down from 350 000 at the
beginning of the 2000s and 1 900 refuelling stations (about 40% of the
total).
Figure B13.1: Autogas consumption and vehicle fleet Netherlands
There are signs that consumer interest in Autogas may be recovering as a

result of the general increase in fuel prices, which has boosted the absolute
cost savings that can be achieved from switching to Autogas. In 2010, Ford
launched four models running on Autogas in the Netherlands and is working
with BP to create a joint commercial offer, including 100 of free fuel, to raise
awareness and create additional demand for Autogas cars. The rise in the
number of Autogas vehicles in 2010 may presage a recovery in fuel
consumption in 2011.
89
Netherlands
13.2
The Dutch government has maintained a policy of encouraging the use of

Autogas through fuel and vehicle tax incentives for many years. The excise
tax on Autogas has been raised every year since 2007, but by less in absolute
terms than the taxes on gasoline and diesel (Table B13.1). At only 8.7 euro
cents/litre in 2010, it remains far lower than the tax on gasoline
(72 cents/litre) and diesel (43 cents/litre). Autogas prices at the pump are only
55% those of diesel and 43% those of gasoline. Autogas is 86 cents/litre
cheaper than gasoline at the pump the biggest differential of any country
included in this survey at prevailing market exchange rates.
Table B13.1: Automotive-fuel prices and taxes Netherlands (euros/litre)

2005
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
The large excise-tax differential with gasoline results in a relatively low

breakeven distance for Autogas against gasoline, of around 26 000 km for
OEM vehicles (which are relatively cheap in the Netherlands) and 36 000 km
for converted vehicles (Figure B13.2). In contrast to most countries, the
additional cost of OEM vehicles estimated at only around 1 400 on
average in 2010 is less than the cost of conversion (at just under 2 000).
90
Netherlands
Autogas is always more competitive than diesel (regardless of distance)

based on the assumption that a diesel LDV costs is around 3 000 euros more
than for a gasoline model. The low level of interest in Autogas in the
Netherlands despite its strong competitive position appears to be explained
by the fuels poor image, resulting partly from some technical problems in
fleets of older vehicles (ECN, 2010).
Figure B13.2: Running costs of a non-commercial LDV, 2010 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.
Figure B14.1: Autogas consumption and vehicle fleet Poland
At end-2010, there were an estimated 2.23 million Autogas vehicles in use, or

14% of the total vehicle fleet. Most vehicles are converted LDVs for private
and commercial use, including taxis most of which have been converted to
Autogas. The number of conversions to Autogas was boosted in 2004 by a
surge in imported second-hand gasoline cars, which are relatively cheap to
convert, following Polands entry into the European Union. Conversion costs
are very low compared to Western European countries, but have been
92
Poland
increasing as the sophistication of new and imported second-hand gasoline

cars increases. Sales of OEM Autogas vehicles, including models marketed by
Skoda, Fiat, Opel and Seat, are running at about 2 000 per year. There are an
estimated 5 900 retail outlets in Poland (the third-largest number in the
world after Turkey and Germany), mostly small, family-run stations.
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).
Table B14.1: Automotive-fuel prices and taxes Poland (zlotys/litre)

2005
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).
Figure B14.2: Running costs of a non-commercial LDV, 2010 Poland
Even at a conversion cost of 5 000 zlotys, the break-even distance is little

more than 30 000 km. An OEM Autogas vehicle breaks even with gasoline at
around 62 000 km. The higher vehicle-acquisition and running costs of diesel
mean that a converted Autogas vehicle is always more competitive with
diesel, regardless of the distance travelled.
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
Figure B15.1: Autogas consumption and vehicle fleet Russia
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
Presentation by A. Rodichev, Russian LPG Market: Current Status and Trends

(Dusseldorf, June 2011).
95
Russia
of that of diesel. Retail fuel prices are deregulated. There are no other fiscal
or regulatory incentives.
Table B15.1: Automotive-fuel prices and taxes Russia (roubles/litre)

2005
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
The high price of Autogas renders it uncompetitive with either gasoline or

diesel: Autogas running costs are always higher than those of gasoline and
higher than those of diesel over about 10 000 km (Figure B15.2). In 2004,
Autogas was competitive with gasoline above 18 000 km and up to 100 000
km against diesel. The recent expansion in Russias Autogas market may
have been driven by non-market factors, since there appears to be no
financial reason for motorists to opt for the fuel.
96
Russia
Figure B15.2: Running costs of a non-commercial LDV, 2010 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.
Figure B16.1: Autogas consumption and vehicle fleet Thailand
The number of vehicles running on Autogas grew rapidly after 2003 to

around 550 000 in 2008, but the number has since fallen back to under half a
million. Most Autogas vehicles are converted taxis and motorised rickshaws.
Over half of the countrys 60 000 taxis are dual-fuelled. There are around 560
refuelling stations.
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.
Table B16.1: Automotive-fuel prices and taxes Thailand (baht/litre)*

2005
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
* In Bangkok. ** Excise and mineral taxes.
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.
Figure B16.2: Running costs of a non-commercial LDV, 2010 Thailand
100
17
Turkey
Turkey
17.1
As a result of spectacular growth in consumption since the end of the 1990s,

when a ban on Autogas vehicles was lifted, and especially since 2003, Turkey
today has the second-largest Autogas market in the world after Korea.
Consumption doubled in the seven years to 2010, reaching almost 2.5 million
tonnes (Figure B17.1). Demand grew particularly strongly in 2007. In 2010,
Autogas consumption exceeded gasoline consumption for the first time.
Autogas accounts for about 18% of total automotive-fuel consumption and
two-thirds of Turkeys total LP Gas consumption, more than four-fifths of
which is met by imports.
Figure B17.1: Autogas consumption and vehicle fleet Turkey
The number of vehicles able to run on Autogas has continued to rise,

reaching almost 2.4 million at end-2010, or about one-third of the countrys
total vehicle fleet. An estimated 40% of private cars now run on Autogas and
the number of Autogas vehicles is expected to continue to grow in the near
future: Aygas, the leading fuel retailer in Turkey, expects another 300 000
gasoline-powered cars to be converted during 2012.1 The number of
conversions has been running at about 250 000 per year since 2006. Most
vehicles that use Autogas are privately owned, converted, old gasoline cars;
taxis, almost all of which run on Autogas, make up about 10% of the total
Autogas fleet (and 30% of consumption). Sales of OEM vehicles have also
1
Autogas Updates, December 2011. Available at:

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/wlpga-autogasupdates-december2011-2.pdf
101
Turkey
been increasing, with a dozen carmakers, including Chevrolet, Dacia,

Daihatsu, Fiat, Hyundai, Lada and Proton now marketing Autogas cars in
Turkey. Renault and Honda also launched Autogas models at the beginning
of 2012. There are an estimated 8 700 refuelling sites equal to well over
one-third of all service stations.
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.
Table B17.1: Transport-fuel prices and taxes Turkey (liras/litre)

2005
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
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.
Autogas Updates, June 2011. Available at:

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/autogas-updatesjune2011-2.pdf
103
Turkey
Figure B17.2: Running costs of a non-commercial LDV, 2010 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.
Figure B18.1: Autogas consumption and vehicle fleet United Kingdom
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.
Table B18.1: Automotive-fuel prices and taxes United Kingdom (pounds/litre)

2005
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.
Autogas Updates, December 2011. Available at:

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/wlpga-autogasupdates-december2011-2.pdf
107
United Kingdom
Figure B18.2: Running costs of a non-commercial LDV, 2010 United Kingdom
108
19
United States
United States
19.1
Despite federal and state efforts to encourage vehicle conversions and

refuelling stations, US Autogas (propane) sales have declined in recent years
and remain extremely small compared to the rest of the automotive-fuel
market. Autogas consumption amounted to less than 580 000 tonnes in
2010, equal to less than 0.1% of total road-fuel sales. (Figure B19.1). High
pump prices of Autogas relative to conventional fuels, caused mainly by a
high federal excise tax, is the main reason for the low market penetration of
Autogas, though tax credits are available to lower the cost of fuel purchases
and vehicle conversions or OEM purchases.
Figure B19.1: Autogas consumption and vehicle fleet United States
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
Autogas Updates, February 2011. Available at:

http://www.worldlpgas.com/uploads/Modules/AutogasUpdates/autogas-updatesjan2011-2.pdf
109
United States
19.2
There are a number of federal, state and local government incentives to

encourage the supply and use of Autogas. These are summarised below.
More details can be found at the web site of the Alternative Fuels and
Advanced Vehicles Data Center run by the DOE
(www.afdc.energy.giv/afdc/fuels/propane_laws.html).
19.2.1 Fuel-tax differentials

Rates of federal fuel taxes have not changed since 1993; the excise duty on
Autogas, at 3.6 US cents/litre, is lower than that on gasoline (4.9 cents/litre)
and on diesel (6.4 cents/litre). But pre-tax Autogas prices are currently a little
higher than those of conventional fuels. As a result, the average price of
Autogas at the pump in 2010 (including state taxes) was exactly equal to that
of gasoline and only 2 cents/litre lower than that of diesel (Table B19.1). On a
calorific-value basis, Autogas prices are significantly higher than those of
both fuels. The United States is the only country in this survey where
Autogas for non-commercial users is more expensive on a per litre basis than
gasoline.
Table B19.1: Automotive-fuel prices and taxes United States ($/litre)

2005
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
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.
19.2.2 Federal clean-fuel incentive and programmes

Until the end of 2011, the Alternative Fuel Infrastructure Tax Credit was
available to cover up to 30% of the cost of installing alternative fuelling. The
credit was limited to $30 000. In 2009 and 2010, the credit was increased to
50% and the ceiling was raised to $50 000. Fuelling station owners who install
qualified equipment at multiple sites are allowed to use the credit towards
each location. The credit expired at the end of 2011.
Until the end of 2010, the Qualified Alternative Fuel Motor Vehicle (QAFMV)
Tax Credit, introduced under the Energy Policy Act of 2005, subsidised the
incremental cost of purchasing or converting vehicles to run on Autogas. The
1
These reports can be downloaded from

http://www.afdc.energy.gov/afdc/price_report.html
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
For more information, go to www1.eere.energy.gov/cleancities/
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.
19.2.3 State programmes

Most US states make available additional fiscal incentives to support the use
of Autogas and other alternative fuels, including grants and loans for vehicle
conversions and purchases, as well as refuelling infrastructure. Some states
also have AFV purchase mandates. In some states, tax rebates and
exemptions are also applied to Autogas. For example, in California, Autogas
is exempt from the state excise tax of 6 cents per gallon when the vehicle
owner pays a flat-rate sticker tax ($36 per year for a LDV weighing less than
4 000 lbs).
19.3
Autogas struggles to compete with either gasoline or diesel regardless of

distance travelled, even allowing for subsidies on vehicle acquisition and the
Alternative Fuel Tax Credit. This is essentially because of low federal and
state taxes on all automotive fuels. Figure B19.2 compares the running costs
of Autogas vehicles against gasoline and diesel vehicles in 2010, taking into
account both the fuel tax credit (that was still available in 2010) and the
federal tax credit for a OEM vehicle purchase of $2 500. Yet these incentives
are still not enough to offset the relatively high cost of converting gasoline
cars to Autogas, due to stringent safety standards and high labour charges.
Our analysis assumes a conversion cost of $3 500, but actual costs can be
considerably higher for some types of vehicle. Even allowing for the fuel-tax
credit, the per-km running cost of Autogas is higher than that of both diesel
and gasoline because of the lower number of kilometres per litre.
Nonetheless, breakeven distances may be significantly lower in places where
Autogas is available at lower prices (see above).
113
United States
Figure B19.2: Running costs of a non-commercial LDV, 2010 United States
Note: Takes into account the $0.50 per gallon fuel tax credit that was available until the end of
2010.
114
Annex 1: Global autogas market data
Annex 1: Global Autogas market data

Autogas consumption, 2005-2010 (thousand tonnes)
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%
* Compound average annual rate of growth. ** 2006-2010.

Source: WLPGA, Statistical Review of Global LP Gas (various issues).
115
Annex 1: Global autogas market data
Autogas vehicles in use, 2005-2010 (thousands)
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%
* Compound average annual rate of growth. ** 2006-2010.

Source: WLPGA, Statistical Review of Global LP Gas (various issues).
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
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117
Annex 3:
Annex 3: Note on data sources
Note on data sources

Data on automotive-fuel prices and taxes were compiled from a range of
sources. For most countries, Energy Prices and Taxes, a quarterly report
published by the International Energy Agency (IEA), was the source for
historical price and tax data for diesel and gasoline.
The EU Oil Bulletin, published weekly and monthly by the European
Commission, was the primary source of historical data for Autogas for most
European countries. For other countries, Autogas prices were obtained from
national sources, including national LP Gas associations, government
agencies and fuel providers.
Estimates of Autogas vehicle conversion costs and the incremental cost of
OEM vehicles and diesel vehicles were compiled from industry sources in
each country, including car and equipment manufacturers and conversion-kit
installers. Where country-specific information was not available, generic cost
estimates were used.
Most data on Autogas consumption, vehicles and refuelling sites are from the
WLPGAs annual publication, Statistical Review of Global LP Gas. Data on
total road-vehicle fleets were compiled from national sources.
118
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