In addition to the broad social benefits stemming from its low level of pollutant and CO2 emissions, Autogas offers the additional advantage of being more affordable than any other commercially available transport fuel.
The cost of LPG supply and infrastructure is generally lower than for other alternative fuels. On an energy-content basis, the cost of bulk LPG delivered to service stations is roughly the same as for petrol and diesel. The low price of LPG is the result of 3 distinct factors:
- 1. The production source of LPG: LPG is obtained mainly from gas wells and to a lesser extent as an oil by-product from refineries, stored and transported as a liquid at moderate pressures. The average price relationship between natural gas and crude oil is around the 23:1 level and fact is, major oilfields offshore Ghana house more gas reserves than oil. Typical examples are the Sankofa, TEN and the Jubilee fields.
- 2. A surplus of availability and strong long-term supply prospects: The LPG market is sufficiently long to support a rapid and substantial growth in demand in so many years to come. The Ghana Gas Company produces almost 50% of the country’s LPG from processing natural gas offshore Ghana therefore rising demand for LPG is not expected to raise significantly the cost of LPG, relative to petrol given the abundance of supplies.
- 3. The favorable tax rates due to its environmental advantages: The framework for excise rates on energy products is in the process of being established by most governments and Environmental bodies. The integration of the external cost reductions - notably in terms of public health care - associated with the use of autogas will be reflected in the comparatively low excise rates which shall be applied to it.
Fuel Savings Benefits
In Ghana, the price of LPG is lower than traditional petrol and diesel, and so it is able to compensate for the conversion cost providing an incentive for motorists to switch fuels. Despite the increase or decrease in fuel prices, LPG is always 40+% less than petrol or diesel. Currently, LPG-converted vehicle users save around 40% on fuel cost. (Calculate your savings here). No matter the price of conventional petrol or diesel, driving on gas is more economical.
With EXOGAS, the savings you make running on LPG pays for the conversion cost (i.e. the payback period) depending on the distance travelled by the owner. The payback period is usually less than 6 months with a 2-year warranty on all components installed in every vehicle. Additional savings are also made from reduced maintenance and reduced engine-oil change which in-turn prolongs engine life.