Use of CNG declining despite talk about alternative fuel<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
Despite constant talk about the need to revert to alternative
\nfuel amid soaring global oil prices, the use of compressed
\nnatural gas (CNG) in the transportation sector is actually on a
\ndecline, hampered mostly by expensive imported conversion kits
\nand lack of infrastructure.<\/p>\n
State oil and gas firm Pertamina's general manager for
\ndomestic gas, Edwin Bakti, said the government should promote the
\nuse of the unsubsidized fuel.<\/p>\n
\"The government should assist (vehicle owners) to get
\nconversion kits,\" said Edwin on Monday, citing an import tax
\nreduction for conversion kits as one possible measure.<\/p>\n
Ordinary vehicles cannot use the environmentally friendly CNG
\nin their engines but need to have a conversion kit installed.<\/p>\n
Conversion kits for private cars cost Rp 7 million (about
\nUS$716) to Rp 9 million, close to what an average Indonesian
\nearns in a year.<\/p>\n
A conversion kit for a large vehicle, such as a bus or a
\ntruck, costs even more at around Rp 20 million.<\/p>\n
Indonesia is frantically trying to conserve fuel and is
\nlooking for ways to do so as climbing oil prices -- which have
\nreached over $60 per barrel -- and increased consumption have
\nmade the cost of the fuel subsidy balloon. This year, the fuel
\nsubsidy may cost the government up to Rp 150 trillion, or about a
\nquarter of state budget expenditure, without concerted efforts to
\nreduce fuel usage.<\/p>\n
Although the lack of CNG filling stations is another reason
\nthat people are not eager to use gas in their cars, Edwin said
\nthere had been no instruction from the government to build more
\nstations, nor would Pertamina take the initiative to do so.<\/p>\n
\"How can we invest when CNG is not selling well?\" he said.<\/p>\n
Pertamina data show that CNG sales in the transportation
\nsector decreased by 13 percent to 14,735 kiloliters gasoline
\nequivalent (klge) in 2004 from 17,001 klge in the previous year.<\/p>\n
According to previous reports, of the 17 CNG stations built in
\nGreater Jakarta by Pertamina and private entities, only six are
\nstill operating. The number of vehicles using CNG also dropped
\nfrom 1,500 in 2003 to 500 last year.<\/p>\n
Sold at Rp 1,550 per liter gasoline equivalent, CNG is cheaper
\nthan Premium gasoline, which retails at Rp 2,400 per liter thanks
\nto the subsidy.<\/p>\n
\"Even with such a price, people still consider gasoline cheap
\nenough without the hassle of using CNG,\" said Edwin.<\/p>\n
The government has said that CNG use in the transportation
\nsector, which guzzles about half of all fuel used in the country,
\ncannot be introduced in the near future and serves as a mid-term
\nsolution.<\/p>\n
As a national pilot project, the Jakarta administration has
\nannounced that it would use CNG in the 187 buses that will ply
\nBusway corridors II and III, which will connect Pulogadung in
\nEast Jakarta and Kalideres in West Jakarta once construction of
\nthe corridors are completed.<\/p>\n
A preliminary study from Pertamina indicated that the measure
\nwould save the state Rp 27.75 billion in fuel subsidy expenditure
\nthis year, assuming the buses would otherwise consume 16,830
\nkiloliters of diesel fuel a year.<\/p>\n
The study used assumptions valid in December 2004, when the
\nbasic price for one liter of diesel fuel was Rp 3,749 while it is
\nsold at Rp 2,100 a liter.<\/p>\n
The administration plans to develop two CNG stations, namely
\nin Rawa Buaya, West Jakarta, and on Jl. Perintis Kemerdekaan in
\nEast Jakarta to cater to the needs of the planned Busway
\nvehicles.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/use-of-cng-declining-despite-talk-about-alternative-fuel-1447893297",
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"sponsor": "Okusi Associates",
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