In a reply to The Proposal of Reconsidering Boosting LPG Buses and Taxi Alteration Plan proposed by members of Guangzhou People's Congress, the relevant department of Guangzhou Municipality noted that LPG is not the only option, but it is the best for Guangzhou. The LPG plan suits Guangzhou's traffic situation so the Communications Commission of Guangzhou Municipality will keep on boosting LPG buses as planned.

The Communications Commission will also pay much attention to the introduction of natural gas into Guangzhou and its application to civil purposes and power plants. It also suggests that members of Guangzhou People's Congress call on relevant departments to apply natural gas to automobiles. It further calls on relevant departments to work out plans for natural gas stations.

Mr. Zhu Yongping, member of Guangzhou People's Congress, proposed that, although it was in consideration of environment protection that LPG buses and taxis were boosted, LPG is a huge money-consumer. RMB 124 million of special capital was used to subsidize these enterprises from 2004 to 2007. Is money-consuming LPG the best environmental protection option for public traffic?

Mr. Zhu believed that LPG was not the only clean energy fuel and the Communications Commission should reconsider the boost of LPG. At the same time, natural gas has entered the Guangzhou market, giving the relevant departments multiple options. He suggested that the Communications Commission set about the experimental work of LNG or CNG.

The Communications Commission said that LPG was not the only clean energy fuel; however it currently suited Guangzhou's situation and could be put into use immediately. It said that from the LPG application on buses and taxis in the latter half of 2003 to the end of May this year, there were altogether 5,959 buses and 11,484 taxis running on LPG. With the development of energy-saving and consumption-reducing technology and their application and the fact of continuous soaring oil prices, the cost gap between oil and gas has been continually shortening since 2003, while the gas cost of taxis is still maintaining its advantage. In addition, the price of LPG in general is constantly declining; the price gap between oil and gas is further increasing. Although the investment for new LPG automobiles in the earlier phase was relatively big, its return is long-term.

The current situation for Guangzhou is as follows. Firstly, it lacks energy, oil, gas and power and is dependant on exterior supply. Whereas, there are five first grade LPG docks, which can ensure a long-term steady supply. Secondly, it is not feasible to set up CNG stations in urban areas as its safety requirement is much higher than that of LPG. Thirdly, the CNG and LNG are currently supplied for civil purposes and power plants without an automobiles application plan. Fourthly, the LNG powered automobiles are still undergoing research with a high cost for complete vehicles and there are still no LNG passenger vehicle standards at present.

Editor: Yan