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Boom for LPG retailers as drivers switch to autogas

Boom for LPG retailers as drivers switch to autogas
Autogas has emerged as a viable alternative for motorists seeking to mitigate the impact of high petrol prices. PHOTO/Print

As petrol prices continue to soar in Kenya, reaching over Sh200 a litre in many parts of the country, a significant number of taxi drivers and motorists are turning to a more economical option – converting their vehicles from petrol to gas-powered machines.

The shift is not only easing the financial burden on drivers but also proving to be a boon for liquefied petroleum gas (LPG) retailers, who are witnessing a surge in demand for their services.

Steep increase in petrol prices has been a major cause of concern for Kenyan citizens, particularly those heavily reliant on personal vehicles and public transportation.

In response to the exorbitant costs associated with running petrol-powered vehicles, an increasing number of drivers are considering alternative solutions.

LPG, or autogas as it is commonly known, has emerged as a viable alternative for motorists seeking to mitigate the impact of high petrol prices on their earnings. At present, the cost of a litre of LPG remains below Sh100, hovering around Sh95.

This significant price difference has created a compelling case for many taxi drivers and motorists to explore the possibility of converting their cars to run on LPG.

“LPG is more cost effective and cleaner for the environment reducing carbon emissions,” says Otogas, one of the companies doing the conversion along Kampala Road in Nairobi. Progas, a prominent gas retailer in Nairobi, has also identified this growing trend and swiftly moved to cater to the burgeoning demand.
James Momanyi, a technician with Proto, a subsidiary of Progas, revealed that they have witnessed a remarkable surge in demand over the past month, with more and more people seeking to convert their vehicles from petrol to gas or exploring the option of running on both fuels.

“We have seen a rapid increase in demand this month for people asking to convert their cars,” he said, highlighting the surge in interest for LPG conversions. “As petrol prices continue to rise, motorists are actively seeking ways to save on fuel costs, and converting their vehicles to gas presents a viable and cost-effective solution.”

Demand for LPG is estimated to have increased by 95 per cent according to Felix Were an LPG station attendant in Nairobi. “For the last two months our conversion department has been busy converting over 2,000 cars,” he was quoted saying in the local media.

The process of converting a petrol car to LPG involves installing an additional fuel system alongside the existing petrol system.This allows the vehicle to run on either petrol or LPG, giving drivers the flexibility to switch between the two fuel types as per their preference or convenience.

While the initial conversion costs may represent an investment for drivers, the long-term savings from using LPG at a lower price per litre prove to be financially rewarding.

Moreover, environmental benefits associated with LPG have also garnered attention. LPG is considered a cleaner-burning fuel compared to petrol, emitting fewer harmful pollutants and greenhouse gases.

As the demand for LPG conversions surges, Progas and other LPG retailers are witnessing a substantial boost in their earnings. The conversion services, combined with ongoing sales of LPG for domestic and commercial use, are driving increased revenue for these companies.

Progas, in particular, has positioned itself as a leader in providing reliable conversion services and is poised to capitalise on the growing trend. The government has through the Finance Act 2023 doubled VAT on fuel products from 8 per cent to 16 per cent, adding on the pain of already high global prices.
As the demand for LPG conversions continues to rise, leading gas retailers like Progas are capitalising on this trend, boosting their earnings and promoting a cleaner energy future for the country.

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