Cheaper and widespread NGV usage initiative

• Author: zzoom
• Date: Jul 8,2008

News Compiled on NGV

Kelantan State on Cheaper fuel

The Kelantan state government says it has received offers for cheaper, imported NGV (natural gas for vehicle) and (LPG) liquefied petroleum gas from overseas companies as part of its move to lighten the burden of the people following the increased fuel prices.However, the overseas producers of the fuel have requested the state government to get the Approval Permit (AP) to import the fuel, the chairman of the state committee for Economic, Finance and Social Planning, Datuk Husam Musa said. — BERNAMA

– CS : A very welcome move by the state government. Other states should follow.

Petronas

Its other project is Petronas NGV Sdn Bhd, which owns 90 stations with NGV facilities and has plans to increase the number of stations to 200 by 2010. Established in 1992, the NGV is sold at 68 sen per litre and Petronas has forked out RM500 million in subsidies.

Taxi Rates

The situation became worse ever since the government raised the fuel price last month, triggering a free-for-all situation as more and more cabbies decide to do away with the meter and quote their own rates according to their whims and fancies. The argument that NGV (Natural Gas for Vehicles) is cheaper and, therefore, the price increase does not affect them no longer holds water as they claim that it makes no difference at all.

Currently, NGV is offered at 68sen per litre while petrol is at RM2.70 per litre.Taxi drivers claim that before the petrol increase, a full tank of NGV would cost RM8.30 to RM8.50.

“That would take us a distance of 150km to 160km. However, with the recent increase in petrol price, even NGV seems to have gone up in terms of volume,” taxi driver Rahim Kechik said.

Rahim said it now cost him RM10 to RM10.50 to get a full tank of NGV – yet the mileage remained the same.

Petronas Dagangan Bhd had recently clarified in a letter to StarMetro that the NGV price had not been increased.The statement reiterated that Petronas conducted scheduled servicing of its gas processing plant as part of its periodic maintenance exercise.

This has resulted in a richer gas content, based on the reading from their Chromatograph Analyzer. The statement said when gas content was richer, it had more weight and volume and, in turn, provided better mileage.

Interesting note:
According on of the taxi driver , at least 85% of cabbies in KL are not using meters. Cabbies prefer to wait at one designated spot and return to wait again. They charge a higher rate as they usually come back empty to the spot.

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