This refers to the article "New fuel, old cars" (30th April). Much has been said about the advantages of using LPG in automobiles. But is it as good as it sounds? At first sight, yes. But a closer look reveals that the only people who benefit are the importers of conversion kits. Consider the following facts:
The cheapest conversation kit in the market is priced at Rs 6,000, with a running life of 40,000 miles. For an average motorist, who drives 20 miles daily, the kit will require replacement after 6 years.
The interest on Rs 6,000 compounded annually at 9% over a period of 6 years amounts to approximately Rs 3,500. The total effective investment which the motorist makes over the period of 6 years is therefore Rs 9,500.
The petrol bill for the average car will amount to Rs 13,500 assuming that it gives 35 miles to the gallon. With LPG, the fuel cost will be Rs 3,500 over the same period of 6 years. The motorist therefore saves Rs 8,000 in 6 years, after switching over to LPG. But he initially has to invest Rs 9,500. He therefore loses Rs 1,500 (equivalent to Rs 250 per year).
Shakir Lakhani
A-Won Estates Lilly Rd.,
Frere Town,
Karachi
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