articles about investment of car for LPG conversion in the philippines

1/25/10

http://www.alternat1ve.com/biofuel/2008/06/17/diesel-to-lpg-conversion-program-launched-for-
philippine-puv-drivers/

Diesel to LPG Conversion Program launched for Philippine PUV drivers

June 17th, 2008 | Views: 2241

Update: DOE is changing its recommendation on the use of a Diesel LPG system in PUV’s.

Philippine President, Gloria Macapagal-Arroyo, announced the P1B budget allocated for the public utility vehicle
drivers so that they can convert their jeepneys from diesel to Diesel-LPG.

It boils down to P80/day charged to the driver for repayment of his debt for converting his jeepney so that it can
accept the cheaper priced Auto LPG. The diesel engine will then run at a mixture of 70% diesel and 30% LPG.

According to her Excellency, the current price of converting a diesel engine to intake partially LPG is P70,000. A brand
new vehicle that is Auto LPG ready costs around P550,000.

Interested jeepney drivers just have to go to the Development Bank of the Philippines to apply.

I don’t know which is better economically? Converting your diesel engine to accept a 30% mixture of LPG or ditching
your diesel engine with a regular combustion engine and converting it to run on 100% LPG?

Doing a search in some local Philippine Buy and Sell sites, the price to convert your gasoline engine to run on LPG is
around P30,000. At a junk shop before, they were charging me P15-P20k for a second hand Toyota 1.6GLi fuel
injected engine found in a recently totalled Toyota Corolla. Ad in P10k for labor and miscellaneous to the conversion
and engine change process and you get P60k tops.

The math is a bit close as it comes out slightly cheaper if you go for the gasoline engine conversion instead of the
diesel-LPG. I’m not really sure how much mileage you get with auto LPG, but it costs something like P29-31/li versus
the P50/li that diesel is selling at right now. Not to mention, that at least you are just wrestling now with a single fuel
system rather than a dual fuel system (diesel and LPG.)

Update: According to a mechanic I talked to, one of the drawbacks of AutoLPG system being offered in the market, is
that there is a noticeable powerloss in the engine when going up inclines or during high revs. Not something you’d
want if you were driving a jeep full of passengers. It is suggested to use the newer electronic injection type of Auto
LPG systems in order to prevent this power loss problem.
Update: According to the Shell, its a 15% -25% increase in consumption compared to gasoline. here’s a more
comprehensive FAQ on Auto LPG Conversion.

Of course there is also the slight problem of LPG being used to cook food in the kitchen. Right now there are only a
few cars running on AutoLPG, but what would happen if majority of all cars run on LPG? Wouldn’t that raise the price
of LPG to astronomical proportions because of the demand from the transportation sector? I hope not.

Auto LPG isn’t free from being affected by the surging oil markets either. Between 2007 and 2008, the price of auto
LPG increased from P23/li to P29/li, a 26% increase.

http://pinoyraket.blogspot.com/2006/09/lpg-powered-cars-and-taxi-cabs.html
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Monday, September 18, 2006

LPG Powered Cars and Taxi Cabs
With fuel prices at an all-time high, more people are looking for ways to cut transportation cost with the least effect
on mobility and convenience. Auto manufacturers are continuously developing engines powered by electricity and
natural gas. However, it may take more than 10 years before these technologies can be perfected and priced
reasonably for consumers to start buying them.
In an effort to help car owners solve the problem of high fuel costs, Petron Corporation recently introduced, or re-
introduced rather, the use of Liquefied Petroleum Gas (LPG) on gasoline-powered vehicles. This technology, which is
popular in several industrialized countries like Italy, Japan, South Korea and the US, has been in use for more than
four decades. Worldwide, there are close to 10 million motorists already using LPG to power their vehicles.

In the Philippines, the use of LPG became popular when hundreds of Korean-made taxis swamped the metropolis
during the early 90’s. However, the technology did not flourish mainly because the infrastructure for refueling and
servicing of LPG powered vehicles were limited and none of the big three oil companies gave it support. Fuel prices
back then was so cheap that oil companies saw LPG as a competition — and not giving it support only meant that it
will die a natural death — and it did.

Now, however, Petron has taken the lead in developing and re-introducing this fuel-saving technology that will not
only benefit the car owners, but the environment as well. With the launch of Petron Xtend autogas, vehicle owners
now have a sensible choice of using an alternative fuel that is cheaper and a lot cleaner.

Although LPG-powered engines consume five to seven percent more fuel per liter compared to gasoline, the difference
is compensated by the big price difference between the two fuels. The current price of LPG (P25/liter) is at least 30
percent cheaper than the cheapest gasoline (P36.71/liter).

In a recent study made by Petron, they found that motorists, with a car powered by a 1600cc engine, who travel an
average of 50 kilometers a day can save P50 daily, or P1 per kilometer traveled. In effect, the savings would relate to
P350 per week or P18,200 a year.

Petron engineers explained that motorists who use LPG will also earn savings from reduced maintenance cost of their
vehicles. According to Wilfredo Toledo, Petron’s Technical Department manager, using LPG will result in longer
maintenance intervals such as oil changes and tune-ups as LPG has less contaminants, has only minute traces of
sulfur, has low carbon content and no lead, leaving engine parts much cleaner and with less wear.

According to Toledo, Petron Xtend autogas has been proven to be environment-friendlier compared to gasoline. For
comparison, Toledo revealed that for every kilometer traveled, a gasoline-fed car emits 0.001 gram of particulates,
0.14 gram of hydrocarbons and nitrogen oxide, 190 grams of carbon dioxide and 0.6 gram of carbon monoxide.

Xtend autogas, on the other hand, results in less than 0.001 gram of particulates, 0.09 gram of hydrocarbons and
nitrogen oxide, 170 grams of carbon dioxide and 0.3 gram of carbon monoxide.

Toledo explained that LPG is a mixture of hydrocarbons composed mainly of 60 to 70 percent propane and 30 to 40
percent butane. When it is pressurized it becomes a liquid and it is in this form that it is pumped into the vehicle’s fuel
tank.

Compared to gasoline, Xtend autogas has a higher content resulting in cleaner burning characteristics. For
comparison, super grade gasoline only has a 98 octane rating, unleaded has 93 to 95 while LPG has an octane rating
of 104. Once released into the engine, it will naturally become pure gas, resulting in a more efficient combustion.

Having driven a brand new car powered by LPG for a test drive, we felt only a slight change in engine performance
(about five to 10 percent less). However, Toledo was quick to say that the engine can easily be tuned to increase the
power. But even with the slight loss of power, the car still drove well, no smoke came out from the tail pipe, the
carbon exhaust smell was nowhere and the engine noticeably run much quieter.

But with all these favorable points, there lies one drawback. The price of having an LPG system installed is a bit high,
P26,000 to be exact. However, Petron engineers were quick to say that the initial investment, which is the same as
the cost of a brand new cell phone, can be recouped in a matter or months.

Commenting on its safety, Toledo said "10 million people cannot be wrong. LPG has a safety record as good if not
better than gasoline."

Toledo added that the LPG tanks and conversion kits they install are made of the highest quality steel and have been
tested to withstand high-pressure. They are very durable and do not easily puncture like gasoline and other fuel
tanks. For added safety, Toledo advised that motorists have the conversion kits installed at authorized Petron Xtend
autogas stations.

At present, the Xtend autogas refilling stations can be found at Valle Verde 1 along C-5 Road in Pasig and on Gil Puyat
Avenue corner Makati Avenue in Makati. More Xtend autogas dispensing stations will be put up within the year all
across Metro Manila and in key cities and provinces all over the Philippines.
Petron Xtend autogas: LPG for gas-powered engine re-introduced
By ANJO PEREZ

----------

Cook with it, drive with it � and enjoy a cleaner ride.

The same liquefied petroleum gas (LPG) used for cooking food is now being used to fuel taxicabs that ply the busy
streets of Metro Manila.

Xavierville Transport Service (XTS) has a fleet of 50 cabs operating all over Metro Manila and it is one of the few taxi
companies now using LPG as an alternative fuel source.

At a time when diesel and gasoline prices are going through the roof, it is also worth noting that these vehicles for
hire use fuel that costs less.

The STAR learned of this after chancing upon a Xavierville cab in Makati City.

The driver said in an apologetic tone that they do not allow passengers to smoke while in the cab because they have
an LPG tank on board which is powering the cab�s engine.

Posted conspicuously inside the cab was a sign that read: "LPG-powered vehicle. Please do not smoke."

XTS operations manager Allan Redondo said in an interview that his company was among the first to use LPG as fuel
for their fleet for a number of reasons.

Redondo said he has heard that taxi units belonging to cab companies EMP, Freedom and Monique have also scrapped
the use of conventional diesel or gasoline in favor of the cheaper and cleaner LPG.

"Our cabs are equipped with conversion gears which vaporize liquid fuel from LPG containers for fuel," he said.

XTS, he said, started installing the conversion kits manufactured and distributed by the Torkita company in August
last year and completed the installation of the gadget in all their vehicles in December 2005.

Manila�s cab companies are following a trend in using LPG fuel that began in Japan and in Bangkok, Thailand, where
roughly 60 percent of taxicabs were fueled by LPG as of mid-2005.

LPG, Redondo said, is bought from Petron, which is working in partnership with Torkita.

XTS, based in Para�aque City, invested more than P1.3 million in the LPG conversion of its units and expects to
recover the amount in two years.

Redondo said the company had to spend P26,000 for the conversion of each taxi unit and had to take out a bank loan
to finance the project.

"It�s a long-term investment but it�s worth it," he said citing three main reasons and several advantages brought
about by the use of LPG.

"Basically, there are three reasons why we invested in this. First, it�s for our drivers," Redondo said explaining how
the use of LPG allows their employees to earn more.

XTS drivers, he said, earn by first meeting the boundary requirement while shouldering high fuel costs because the
cost of fuel is not charged to the company�s share of the day�s proceeds.

Redondo said LPG costs only P26 per liter which means that drivers save more than P10 per liter, based on the
current prices of unleaded and premium gasoline.

"Obviously, they earn more and are motivated to work more," he said, stressing that their company tries to consider
how they can make their drivers happier.

Secondly, he said, using LPG as fuel, "in our own little way, is our contribution to the implementation of the Clean Air
Act."

Redondo said the smoke emission rate of their taxis is now at negative levels, which means that their engines are
burning "cleaner" fuel, thus reducing harmful smoke emissions.
He also said that using LPG as fuel is XTS� contribution to the national government�s call for the use of alternative
and cheaper fuel sources.

Other alternative fuels promoted by the government are coco-biodiesel, derived from coconuts, and ethanol, which is
derived from either sugarcane or corn. Both alternative fuels also burn clean, with minimal smoke emissions.

Redondo said shifting to LPG from ordinary diesel and gasoline also prolongs engine life and extends the time between
tune-ups and oil changes � which makes for even more savings in terms of vehicle maintenance.

Besides being cost-efficient, the LPG conversion system installed in every Xavierville taxi unit is also very safe.

Laughing, Redondo said the warning against smoking because the vehicle runs on LPG is actually a bluff, taking
advantage of the public�s fear of exploding gas tanks.

"It�s just a precaution, but it�s actually a misconception that an LPG will explode because of cigarette smoking," he
said.

He confessed that the public�s fear of LPGs was being used to give their taxi drivers a valid reason to ask their
passengers to refrain from smoking.

"There are a lot of safety precautions. There are check valves and the like that actually shut down the entire system in
the event of any leak no matter how small," Redondo said.

However, public ordinances have been passed in some cities and towns in Metro Manila banning passengers and
drivers of public conveyances like taxis from smoking while in these vehicles.

Metro taxis now running on LPG

By Michael Punongbayan
The Philippine Star 02/04/2006

http://globalnation.inquirer.net/cebudailynews/news/view/20071128-103581/%91Don
%92t_raise_taxi_fares%2C_convert_to_LPG_instead%92

1/25/10

‘Don’t raise taxi fares, convert to LPG instead’

By Jhunnex Napallacan
Cebu Daily News First Posted 13:27:00 11/28/2007 Filed Under: Road Transport, Consumer Issues

CEBU CITY, Philippines – Cebu’s largest organized group of taxi drivers, the Metro Cebu Taxi Operators Association
(MCTOA), on Tuesday described the move of some cab drivers to raise fare rates as an additional burden to
commuters.

Richard Cabucos, president of the 3,000-member MCTOA, said those who proposed the rate hike, most of whom
operate gasoline-fueled taxis, should instead convert their units to run on cheaper liquefied petroleum gas (LPG).

He said all MCTOA members have taxis that run on LPG, which costs around P29 per liter. Premium unleaded gasoline
ranges between P42.15 and P45.18 a liter.

Cabucos said MCTOA would only ask for an increase if the price of LPG reaches P35 per liter.

He said it was not fair to pass on the burden of increasing fuel prices to the riding public.

“Nganong wala man sila moadto sa LPG aron di’ mahasol ang publiko? Kadaghan nag-offer ug LPG nga pwede data-
datahan (Why don’t they convert to LPG so that the public won't be hassled? There are many who offer LPG
conversion who'll accept installment payments),” Cabucos said.
He said there are conversion kits that sell for around P18,000, whose sellers would allow monthly installment
payments of up to three years.

Ryan Benjamin Yu, managing director of the Cebu Integrated Transport Services Cooperative (Citrasco), said many
driver-members whose taxis run on gasoline would have switched to LPG were it not for the steep cost of buying and
installing a conversion kit.

Yu also said many of Citrasco’s taxi drivers run old taxis that could no longer be converted to run on LPG.

Citrasco, Yu said, has around 200 members who run gasoline-fueled taxis.

Last Tuesday, around 2,000 independent taxi drivers who run gasoline-fueled vehicles said they would file, through
Citrasco, a petition increasing the flagdown rate from P30 to P35, and the rate per succeeding kilometer from P2.50 to
P3.

Yu suggested that authorities devise a scheme wherein gasoline-fueled taxis could collect the higher rate, while the
LPG-run units collect the existing rate.

This, Yu said, would give the public a choice.

Cabucos said MCTOA would not oppose the Citrasco petition, but would not stop anyone else from filing one.

“Let the public file an opposition,” Cabucos said.

__
Utilization

http://www.mb.com.ph/articles/222729/fleet-lpgconverted-taxis-triples-15000
1/25/10

Fleet of LPG-converted taxis triples to 15,000

By MYRNA M. VELASCO
September 30, 2009, 6:09pm

The volatilities in oil prices continue to stimulate public transport taxicabs into shifting their fuel use, with those
powered by auto-liquefied petroleum gas (LPG) having tripled to 15,000 fleets from 4,200 when it was first introduced
three years ago.

As culled from the accomplishment report of the Department of Energy (DoE), it was shown that there was a
continuous increase in the number of taxi fleets converting to autoLPG.

Compared to gasoline, taxi drivers profess that they corner bigger “take-home wages” in a day if their vehicles run on
autoLPG because it is a cheaper option.

If it is any indication, the autoLPG fuel shift registered better results. Other alternatives, such as the proposed
conversion of buses into compressed natural gas (CNG) pale in comparison, according to the DoE.

It noted that CNG-powered buses plying along Batangas/Laguna-Manila and vice versa routes are still limited to 26
fleets – considered flagging compared to what was initially targeted conversion for more than 200 buses.

As far as CNG is concerned, the DoE noted that viability studies are needed to assess commercial operation of CNG-
powered buses in Metro Manila and nearby provinces; as well as in other parts of the country.

Meanwhile, with the transport sector increasing its utilization of LPG, the energy department bared that it has been
exploring policy underpinnings to balance the sharing of the resource to that of household demand.

The DOE is aware that with the abrupt increase of LPG use for transportation, it is unavoidable that this may soon
compete with that of the residential sector’s requirements. When that happens, it may trigger supply constraints and
surge in prices.
The number of autoLPG dispensing stations also increased over the years. Players on this sphere include Petron
Corporation, NAIADDS, Petronas, Shell AutoLPG, Liquigaz, Total Philippines, Seaoil and Pryce Gas.

LPG vehicles face checks

By Paul Anthony A. Isla

Reporter

THE Presidential Task Force on the Security of Energy Facilities and Enforcement of Energy Laws and Standards (PTF-
SEFEELS) will conduct inspections of Metro Manila vehicles in a bid to apprehend illegally converted auto-liquefied petroleum
gas (LPG) being used as public transportation.

Energy Secretary Angelo Reyes, who chairs the task force, said they want to ensure the safety and well-being of the riding
public. Reyes issued a strong warning to drivers and operators of buses, taxis and tricycles not to “employ the services of illegal
conversion shops which have no certification from the Department of Trade and Industry, and technicians who have no
certification on auto-LPG conversion and installation.”

He advised drivers and operators to bring with them the certificate of conversion issued by accredited LPG converters.
“Operatives of the task force will inspect vehicles to ferret out violators of energy laws and standards. While we support the
conversion to auto-LPG so that drivers can make more money from their daily rounds, we do not want to compromise the
safety of the riding public,” Reyes said.

Early last week, Department of Energy (DOE) officials met with the autogas industry stakeholders to discuss safety and
technical issues that continue to arise as more and more people tap into the autogas industry.

“The meeting was held to check and monitor the proliferation of the autogas industry. We wish to ensure the safety of
commuters,” Mario Marasigan, director of the DOE’s Energy Management and Utilization Bureau, told reporters.

Marasigan said the government is bent on ensuring the safety of motorists and commuters. “We are not only ensuring cheaper
fuel, better environment, better emission—but also the safety of consumers.”

The original standards for LPG for automotive use have been in place since 1984, Marasigan said, adding that authorities now
believe the codes and standards might not be appropriate since the autogas industry grew.
http://www.businessmirror.com.ph/09082008/nation02.html
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