Autogas market gains momentum in Russia

The increase in retail gasoline prices in Russia has made many drivers look for more economic alternative fuels, including Autogas, and has helped LPG producers boost sales and reach a record price in Russia, according to Reuter’s data.

Reuters estimates, based on data from the Central Dispatching Department of the fuel and energy complex, showed that LPG consumption for transport on Russia’s domestic market went up by 5.2% in the first half of this year compared to January-June 2017.

Unlike retail prices for gasoline and diesel fuel, which grew in April-May by 8-9%, the price of Autogas at refuelling stations remained relatively stable despite the long-term increase in prices on the wholesale market.

There was also an increased demand in Autogas conversion systems in April-May. “There have been queues for a month ahead to convert vehicles,” said a trader. “Autogas is still more profitable to use (when compared to gasoline).”

Experts estimate the average price for 4th generation Autogas conversion kits (modern gas injection system), including installation, is at 30,000 to 50,000 rubles, depending on the producer and tank capacity.

Alexander Amiragian, deputy director of the analytical centre of Russia’s fuel and energy complex, estimated that the payback period for an Autogas conversion is 4 to 5 months for a taxi company (with 70,000 kilometres of travel annually), while for private vehicles (25,000 kilometres per year) takes 10 to 11 months.

“The payback period is directly related to the mileage of the car, that is why for taxi companies it is much shorter than for private vehicles,” Amiragian said.

There are currently over 3 million vehicles powered by Autogas in Russia. For more information, please visit this link.

26 September 2018