At a conference today on liquid petroleum gas (LPG), Minister of Transport Meir Sheetrit said that he would act to set up LPG filling stations all over Israel. The American-Israeli Gas Corporation Ltd. (Amisragas), the Israel Motor Vehicles Importers Association, Subaru, and the Public Council against Noise and Air Pollution (Malraz) jointly sponsored the conference.
Sheetrit said that deployment of LPG filling stations around Israel was inadequate, with only a few such stations in operation. LPG is used for cooking, household heating, and industrials needs.
Sheetrit added that he would ask the Ministry of National Infrastructures to issue a regulation ordering that a certain proportion of Israeli filling stations facilitate LPG refueling. “As far as I know, gasoline companies are not short of cash or profits. They can be required to set up LPG filling stations,” he said.
In response to Sheetrit, representatives of the fuel companies present at the conference said, “The Ministry of the Interior currently does not permit construction of LPG filling stations, although a National Outline Plan has been approved for them.” Sheetrit answered that the matter was under the jurisdiction of the Ministry of National Infrastructures. The fuel companies’ representatives said that the Ministry of the Interior was also involved, because setting up filling stations of this type must be included in the companies’ business licenses.
Regarding LPG prices, Sheetrit said that taxes on LPG should be frozen for ten years in order to encourage its use, which is less polluting than ordinary gasoline. Many European countries have had a very significant LPG penetration rate of 10-20% for vehicle fuel in recent years.
Amisragas CEO and co-owner Michael Faradis said that direct subsidies for drivers should be used to encourage the use of LPG for cars. He added that drivers would not use LPG unless it was cheaper than gasoline and diesel fuel. He proposed that the government initiate a law stipulating that a certain percentage of large vehicle fleets be powered by LPG.
Israel Motor Vehicles Importers Association chairman and Fiat agency CEO Yaki Enoch told the conference that he was pessimistic concerning LPG penetration for vehicles. He explained that where taxes were concerned, “The vehicle sector in Israel has become the Ministry of Finance’s milch cow… Without a commitment to set the price of LPG, no one will invest in it.”
Published by Globes [online] -l www.globes.co.il - on October 21, 2003