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15^th May 2003 (Source: DTI )

Energy Minister Brian Wilson today underlined the Governments

continued commitment to Liquified Petroleum Gas (LPG) as an

alternative to petrol and outlined its environmental benefits over

other fuels.

LPG is half the price of petrol and reduces carbon dioxide emissions

and other air pollutants. Around 25,000 new LPG vehicles or

conversions are produced a year and numbers are growing all the time

as more filling stations stock the fuel and grants are made available

for conversions.

Speaking at the 2003 conference of the Liquified Petroleum Gas

Association (LPGA) Mr Wilson said:

"My strong support for LPG is founded on its environmental benefits,

and the necessity to increase low carbon transport.

"A fuel that reduces air pollution and costs half the price of petrol

or diesel is something motorists can't afford to ignore. But LPG has

its critics, and their arguments need to be challenged.

"There is no doubt that LPG is a more environmentally friendly fuel

than its competitors. The benefits of lower CO2 emissions and the

reduced oxides of nitrogen and particulate matter from LPG are two of

its overriding benefits above any current alternatives.

"Other future fuels such as Hydrogen are a long way from translating

into a serious alternative. Even the Americans who have thrown their

weight behind the hydrogen economy do not see mainstream vehicles

being fuelled in that way until 2020 at the earliest.

"LPG is the bird in the hand and that is why I personally would like

the current fuel duty rebate retained, to help seal the maturity of

LPG. I am keen to ensure that we provide the correct forms of

support, in the right way, where there is a clear case to do so."

The Energy White paper clearly identifies LPG as one of the fuels to

contribute to lower carbon transport and that reflects the

cross-government view.

The government launched the Boost LPG initiative in April to increase

the availability of the fuel in rural areas like the Scottish

Highlands and Islands; East Anglia and Cornwall, by giving grants to

garages to help them become accredited LPGA converters.

Mr Wilson also stressed the need for the industry to make the case

for LPG in the current Treasury consultation on fuel gases

"A sound rationale must be given for what we in Government do and

this consultation is your opportunity to provide that justification

and make your views count."

The energy industry has invested over £50 million to increase public

access to LPG filling stations and a pilot programme under the Boost

LPG initiative is underway, in partnership with AEA technology, to

deliver grants to garages in rural areas to help them become LPGA

accredited converters.

Director General of the Liquified Petroleum Gas Association Tom

Fidell said:

"Auto gas is here now with over 1200 retail outlets in the UK. The

boost LPG programme will ensure that high quality conversion

companies are available to get more vehicles on the road.

"With refuelling outlets and the vehicles there will be benefits for

both the environment and the motorist."

Notes to Editors:

1. Energy Minister Brian Wilson addressed the Liquid Petroleum Gas

Annual Conference in Dorset today.

2. Application forms and general information about the pilot Boost

LPG grants for converters programme can be obtained from AEA

Technology web site www.boostlpg.aeat.com or by calling the hotline

on

3. Further information on Boost LPG is available from the Boost LPG

hotline, tel: , or the website: www.boostlpg.aeat.com

4. The LPG Association also has its own website (www.lpga.co.uk) with

county-by-county information on LPG converters and filling stations.

LPG Fact Sheet:

More than 5 million drivers worldwide use LPG and in the UK numbers

are increasing as more motorists learn of the benefits.

In the UK, from a small start of 3,500 at the end of 1998 to nearly

100,000 vehicles today and, with the Government fiscal incentives

continuing, it is forecast that numbers will increase to around

250,000 by the end of 2005.

Compared with petrol LPG typically gives up to a 12% reduction in

Carbon Dioxide emissions, and compared with diesel it offers

significant reductions in emissions of particulates and oxides of

nitrogen - the two air pollutants of most concern in the UK.

Owing to its environmental benefits, the duty on LPG was reduced by

29% in the 1999 Budget and 40% in the 2001 Budget, and the Government

has pledged to freeze the duty level in real terms until at least

2004.

This has resulted in a retail price on the forecourt of around half

that for petrol and diesel. LPG cars may also receive discounts under

the company car tax system in which the rate of tax paid is linked to

the level of CO2 emissions.

Initially, as a pilot, the Boost LPG programme will be managed and

delivered by Momenta (an operating division of AEA Technology) and

the DTI, and will run in tandem with the Energy Savings Trust's

existing and well-established PowerShift initiative, funded in

England and Wales by the Department for Transport (DfT) and in

Scotland by the Scottish Executive. The Scottish Executive also funds

the autogas initiative in Scotland.

The LPGA represents the gas supply and conversion companies in the

UK. The association sets the standards for converting vehicles to run

on LPG and also for installing refuelling facilities on the

forecourt.

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