LPG future depends on fuel tax cuts

Rambaud, a former chairman of the Economic Commission of the AGPL, the European equivalent of the LPGA, said: 'I think it is realistic to aim for a further 25% reduction in duty levels, but we need also to explore other ways of making LPG in particular more competitive, perhaps through incentives on engine conversions or a reduced licence tax for gas-powered vehicles.'

He also warned that LPG must not get drawn into draft EC proposals for energy tax harmonisation on fossil fuels. 'The LPGA needs to be pro-active on this issue to ensure that, if the introduction of a harmonised energy tax is seriously mooted, LPG is not placed at a commercial disadvantage compared with other fuels and natural gas or electricity,' he said.