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.