Gas for transportation loses its charm

Gas for transportation loses its charm

Fitri Wulandari, The Jakarta Post , Jakarta

The use of gas as a clean energy source for cars continues to decline despite government efforts to reduce the dependency on fuel.

Gas was introduced to the transportation sector in July 1986 in a bid to lessen the use of fuel and promote a cleaner energy.

Unfortunately, after more than 17 years, the results have been discouraging.

Data from state-owned oil and gas firm Pertamina shows gas sales and the number of vehicles using gas have declined sharply over the years. In 2001, gas sales reached 21,767 kiloliters and there were 4,600 vehicles using gas.

In 2002, gas consumption for transportation was down to 19,516 kiloliters, while the number of vehicles using gas plunged to 2,500.

The fact that gas is 61 percent cheaper than premium gasoline has not helped. Gas for transportation is now Rp 700 per liter while premium gasoline is Rp 1,810 per liter.

Clean energy campaigner Ahmad Safrudin said at present the number of vehicles using gas was less than 2,000 and declining.

Ahmad said one of the problems was a lack of infrastructure, pointing out that there were only 12 stations in Jakarta where people could fill their cars with gas.

"Ideally, Jakarta should have 110 stations," Ahmad of the Partnership for Clean Energy told The Jakarta Post.

Ahmad said a lack of adequate technology, weak government policies and a shortage of domestic gas also were major constraints in developing gas as a transportation fuel.

The technology to use gas for transportation is still inadequate and expensive, which prevents car owners from shifting to gas, he said.

Moreover, the converter kits needed to switch to gas remain expensive. A converter kit, Ahmad said, costs about Rp 6 million to Rp 7 million (about US$950).

Gas shortages do not help the situation. Ahmad did not give details on the gas supply, but data from the Energy Information Center at the Ministry of Energy and Mineral Resources shows gas for domestic use makes up just 35 percent of the total national gas production of three trillion cubic feet per annum.

Nenny Sri Utami, the head of the Energy Information Center, said boosting the use of gas and other alternative sources of energy for transportation required huge investments of money and time.

"Switching from fuel to other types of energy requires the installation of new equipment, which of course requires time and money," Nenny said.

Nenny said the government policy of gradually cutting the fuel subsidy would reduce fuel demand in the long term, but quickly added that the infrastructure to distribute gas must be immediately developed.

The government, through gas firm PT Perusahaan Gas Negara, is now trying build a national gas transmission pipeline.

But Ahmad said a strong political will from the government was crucial if the switch to gas was to be successful.

"The government's policy is still half-hearted because it is not incorporated into policy on the automotive industry," he said.

For example, the automotive industry should be required to produce dedicated engines for gas, Ahmad said.

He added that a government loan scheme for car owners to purchase converter kits would also help promote the use of gas.