PEUGEOT has launched a factory-fitted bi-fuel 406 which runs on both unleaded petrol and liquified petroleum gas, giving a further boost to the alternative-fuelled vehicle bandwagon. Recent weeks have seen announcements from Ford and Vauxhall of their intentions to develop gas-powered cars, and the factory-produced Volvo bi-fuel S70 and V70 are already on sale.

In France the bi-fuel Peugeot 406 has just hit showrooms, commanding a FF14,000 (c£1,500) premium over the equivalent petrol version, available as both saloon and estate. Peugeot claims the price supplement will be recouped once a driver covers more than 19,500 miles a year, the savings resulting from a reduction in fuel bills thanks to the lower duty levied on LPG, and from French writing-down privileges.

In addition, French fleet drivers enjoy the major tax advantage that LPG vehicles are exempt from company car tax. Following the closure of Paris to vehicles with odd and even registrations on alternate days in September, the French government is apparently working on a green flag scheme which would allow low-emission vehicles access to the city centre even on restricted days.

Demand for low emission vehicles is also growing sharply in the UK, particularly in the fleet sector, where Peugeot has had a number of enquiries from companies and local authorities looking to run cleaner fuelled vehicles.