BY: Dr. Hana Saada
ALGIERS- Algeria’s national fleet of vehicles running on liquefied petroleum gas (LPG/C) has surpassed the milestone of one million vehicles by the end of 2023, according to the Commisariat for Renewable Energies and Energy Efficiency (CEREFE).
In a report focused on the “development of LPG/C and CNG (Compressed Natural Gas) as drivers of energy transition in the transport sector in Algeria,” CEREFE stated that “the national fleet running on LPG/C counted 850,000 vehicles in the first half of 2023 and is expected to exceed one million by the end of the year.”
Drawing on the latest statistics from the energy sector, the Commisariat highlighted a “meteoric growth” in the use of LPG/C in Algeria, observed since 2015, particularly following increases in fuel prices enacted through the Finance Laws of 2016, 2017, 2018, and 2020, as well as subsidies provided for the supply and installation of LPG/C kits.
According to the report, compiled by the “Clean Mobility” working group comprising representatives from several ministries, the price of LPG/C in Algeria is the cheapest in the world, offered to users at a rate five times lower than that of gasoline and three times lower than that of diesel.
As a result, demand for LPG/C in Algeria has continued to rise since 2016, increasing from 290 Ktep (kilotonne equivalent of oil) in 2015 to over 1800 Ktep in 2022.
The surge in demand for LPG/C has also led to a “significant” reduction in gasoline consumption, decreasing from 4.4 million tons in 2015 to 3.3 million tons in 2022, resulting in gasoline savings of over one million tons in 2022 compared to 2015, the document noted.
Emphasizing Algeria’s significant potential in LPG/C and CNG production, CEREFE asserted that the development of these two products represents “the most suitable solution economically, environmentally, and health-wise.”
In this context, the Commisariat put forward a series of recommendations to further accelerate the pace of vehicle conversion to LPG/C.
These recommendations include equipping all existing filling stations with LPG/C distribution facilities, increasing the number of such stations nationwide, bolstering the fleet of LPG/C tanker trucks to ensure continuous supply to service stations, and expanding the number of LPG/C distributors at service stations to eliminate long queues.
The report also called for encouraging and supporting the construction of service stations exclusively dedicated to LPG/C distribution, examining the gradual suspension or total abolition of subsidies for vehicle conversion to LPG/C, and redirecting them towards the development of LPG/C distribution infrastructure. Additionally, it advocated for supporting local manufacturing of LPG/C kits and storage tanks.
Furthermore, the implementation of regulatory and technical measures to allow vehicles equipped with LPG/C kits access to underground and covered parking lots, as well as the introduction of a specific clause in specifications regulating imported and locally manufactured vehicles, requiring a quota of models equipped with LPG/C kits with the necessary approval, were among the recommendations put forward by CEREFE.
Regarding CNG, the Commisariat noted that this fuel has not yet moved beyond the experimental stage, despite the implementation of a considerable number of actions to promote its use as a vehicle fuel.
To revive the development program for this fuel, it is essential to devise a strategy to accelerate the creation of a conducive ecosystem for the deployment of CNG in the transport sectors, CEREFE urged.
In this regard, it outlined several actions to be taken, including the establishment of a necessary regulatory framework for the widespread adoption of CNG, a support mechanism for investors in CNG stations, and financial assistance for the acquisition of buses and trucks running on CNG.
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