Laugfs Gas had a press conference Tuesday and to the surprise of many who attended, the press briefing was not called to announce a price hike.
In the face of escalating petroleum prices Laugfs Auto Gas announced that it was the right time for vehicle owners to convert their vehicles’ engines to run on auto gas.
The difference in petrol and auto gas prices is almost double and keeps widening each month, the company said in a statement.
"Within a year Sri Lanka had seen petrol prices increase from Rs 106 to Rs 157 per litre while gas prices have increased from Rs 62 to Rs 80 per litre; a 29 percent increase as against a 48 percent increase in petrol prices."
The company said that if 200 litres of petrol was consumed a month, at Rs 157 a litre, it would cost Rs 31,400—Rs 376,800 a year. The cost of running on auto gas would amount to Rs 16,000 a month (200 litres at Rs 80)—amounting to Rs 192,000 a year. Thus running on auto gas would result in a saving of Rs 184,800.
However wonderful the proposition may seem, beating negative perceptions harboured by vehicles owners that auto gas conversion would ruin their vehicle engines is a tough hurdle Laugfs Auto Gas would have to overcome if it is to cash in on these hard times.
There are false myths with regard to auto gas conversion which came about when the company launched its auto gas business in 1990 and resulted in "other mushroom organisations cashing in on the opportunity and had offered low quality cut priced conversion systems that seriously hampered the growth of the market," the company said, denying emphatically that auto gas ruined vehicle engines.
With right technology, the company said that the benefit of converting to auto gas, apart from the 49.0445 percent saving, is that it was less harmful on the environment.
The major drive to convert vehicle engines to run on auto gas is an improvement in terms of low emissions of pollutants, said Senior Lecturer and former Head of the Mechanical Engineering Department, University of Moratuwa, Dr. A. G. T. Sugathapala.
"The technology is there to conduct the conversions however I would not advise owners of new vehicles to make the change," he said.
Dr Sugathapala pointed out that engines are specifically made to run on certain fuels and although the technology for a conversion may exist, the temperature point and lubrication properties of auto gas may have an effect on new vehicles.
Not personal but a national issue
Dr Sugathapala however draws attention to critical factor that needs to be analysed by Laugfs Auto Gas if it hopes to convert vehicles at a large scale.
"Auto gas, or LPG, is mainly used for cooking purposes and is therefore taxed less by government. But should vehicles begin to convert to auto gas in a large scale, government may decide to increase taxes on LPG as revenue from petroleum products," he told the Island Financial Review.
This is a policy issue that people will have to be mindful of, he warned.
"Although the environmental benefits exist, the cost benefits are distorted. Converting three-wheelers and vehicles used for public transport may be a good idea, however we must be careful that people don’t get penalised in order to benefit those who own vehicles," Dr Sugathapala said.
"It should not be an issue about personal benefits, but rather, the benefits to the entire nation should be considered."
