Home / Environment / News Tools: Save | Print | E-mail | Most Read | Comment
Shanghai lifts LPG price as world fuel crisis bites
Adjust font size:

Shanghai yesterday increased the price of liquefied petroleum gas for motor-vehicle use to help ease a supply shortage caused by skyrocketing worldwide fuel costs - and to keep some people in business.

The benchmark LPG price for mopeds was raised to 4.7 yuan (68 US cents) per liter from 4.2 yuan, and that for taxis was lifted to 4.7 yuan from 3.6 yuan, according to the Shanghai Price Bureau.

The bureau stressed that retail LPG prices must not exceed these benchmarks.

The rises come as an increasing number of LPG filling stations in the city have temporarily closed or gone out of business.

Even with a government subsidy their businesses have been unprofitable after global oil and LPG prices soared.

City demand for the vehicle-use LPG is mainly met by imports. Prices of the auto gas have not been increased in Shanghai since last November.

Normally, Shanghai's 280,000-odd mopeds need 70 LPG stations to supply them. But since the number of stations has halved since the beginning of this year, long queues are the norm.

Shanghai promoted the use of the auto gas on a large scale at the start of the new millennium as the fuel creates less emissions compared with petrol and diesel.

At its peak, the city had more than 40,000 LPG taxis and 100-plus LPG stations.

However, the number of LPG taxis has declined sharply as drivers become frustrated by the lack of service stations and unsatisfactory engine performance.

Plus, LPG-fueled cars are no longer so economic.

LPG has higher equivalent fuel consumption against gasoline, and today's 4.7 yuan-per-liter LPG price is already very close to the 4.77 yuan benchmark of 90-octane gasoline in Shanghai.

There are less than 3,000 LPG cars on Shanghai's roads today and the price bureau has pledged subsidies to taxies affected by the latest price increase.

The city has barred the use of gasoline-powered mopeds since 2006, so moped drivers are the most affected by the recent LPG shortage as they have no other choice.

Shanghai has urged stations that can restart services to do so as soon as possible, government spokesman Chen Qiwei said, adding the city government will keep giving subsidies to ensure supply.

To keep giving subsidies will translate into a financial burden of more than 50 million yuan annually for the government. But if it doesn't, it means investments in LPG stations could be wasted as more would close if energy prices go higher.

It is a true Catch-22 situation.

"According to the experience of other nations, the most practical fuels in addition to gasoline and diesel so far are only natural gas and LPG," said Zhao Guotong, a city government adviser.

Experts said that the city should have a clear plan as to what's the answer to its future transport energy while speeding up studying other solutions like hydrogen fuel cells.

(Shanghai Daily June 16, 2008)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous

China Archives
Related >>
- Oil futures hit new high
- Oil prices rise above US$133 a barrel
- To raise oil prices or not, that is the question
- Gas shortage fuels demand, reserves could be tapped
- No price rise for refined oil amid inflationary pressure
Most Viewed >>
- Trapped tiger, lions saved from quake-area
- Pregnant panda gets to Xi'an from Sichuan
- Quake damage to the Wolong Nature Reserve
- Torrential rain persists in southern China
- Ban on free plastic bags takes effect
Air Quality 
Cities Major Pollutant Air Quality Level
Beijing particulate matter II
Shanghai particulate matter I
Guangzhou particulate matter I
Chongqing particulate matter II
Xi'an particulate matter II
NGO Events Calendar Tips
- Hand in hand to protect endangered animals and plants
- Changchun, Mini-marathon Aimed at Protecting Siberian Tiger
- Water Walk by Nature University
- Green Earth Documentary Salon
- Prof. Maria E. Fernandez to Give a Lecture on Climate Change
More
Archives
UN meets on climate change
The UN Climate Change Conference brought together representatives of over 180 countries and observers from various organizations.
Panda Facts
A record 28 panda cubs born via artificial insemination have survived in 2006.
South China Karst
Rich and unique karst landforms located in south China display exceptional natural beauty.
Saving the Tibetan Antelopes
The rare animals survive in the harsh natural environment of the Qinghai-Tibet Plateau.
More
Laws & Regulations
- Forestry Law of the People's Republic of China
- Meteorology Law of the People's Republic of China
- Fire Control Law of the People's Republic of China
- Law on Protecting Against and Mitigating Earthquake Disasters
- Law of the People's Republic of China on Conserving Energy
More
Links:
State Environmental Protection Administration
Ministry of Water Resources
Ministry of Land and Resources
China Environmental Industry Network
Chengdu Giant Panda Research Base