Plugging The Ethanol Argument
State policies drawn up with long-term goals in mind are often subject to abrupt disruptions as a result of change in government. The stated return of LPG subsidy is the latest example. While the previous military-appointed government wanted prices of liquefied petroleum gas to float in line with global markets, reduce financial burden and encourage consumers to conserve energy, the new administration led by Samak Sundaravej wants to reverse the policy, a pledge it made to voters.
Subsidised LPG prices, according to some car companies, may also persuade drivers to switch from compressed natural gas to LPG _ the opposite of what the Surayud government envisaged.
Toyota is set to become the third manufacturer to offer a bi-fuel model that can run on both CNG and petrol for the new Corolla. The first one was the factory-equipped Mercedes-Benz E-class and the second retro-fitted Chevrolet Optra.
”While the LPG subsidy may be a detriment for carmakers investing in CNG-powered cars, it could also be seen as a way to contain the growth of CNG-powered cars,” commented one veteran car critic.
Filling stations with CNG heads are still few, although PTT is gradually increasing the number of outlets nationwide. Read on…
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