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The Inspection Project of the LPG Price Subsidy Program

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Main work content can be divided into four parts of this annual program. Part one relates to implementing the acceptance, review, audit, and appropriation of funds regarding applications. Part two is about operating the LPG database, completing the data files, and doing statistical analysis. Part three is about collecting information of domestic Hybrid-LPG vehicles and gas refuel stations. Part four is about business contacting meetings. The efforts described below: (1)Conduct the implementing the acceptance, review, audit, and appropriation of funds regarding applications. Through comprehensive check by computers and cross-checking and using the information system to automatic verification of output tables compiled to ensure information is correct. (2)Build up the system that to collect all types of information database, and through cross-checking, to raise the efficiency of review. Gas refuel station operators can known the status of applications of refunds of the prior pieces of information, the gas price subsidy float-adjusted price bulletin information, there is a record of the car refueling membership inquiries (including number, fuel types, and testing effective date) and related statistical analysis through the LPG information system. (3) Subsidy applications of gas filling record are entered in database that can proceed with related statistical analysis and promote existing outcome or serve as reference for future promotion. Of the compiled 2008 to 2013 subsidiary approved information, in addition to the adjustment policies can greatly reduce promotion costs, the gas amount issued by the Bureau of Energy (BOE) can be known to maintain a certain trend. This indicates the adjustment method of the subsidy and continues to maintain the willingness to use LPG, and the economic incentive of price difference maintained by the subsidy. (4)Compiling the Ministry of Transportation and Communication (MOTC) provided Hybrid-LPG vehicle numbers and the amount of gas provided by the BOE, can known the registered number of Hybrid-LPG vehicles has gradually fallen since the EPA has decided not to continue to provide subsidy for modification. However, the amount of gas provided still maintains a certain trend. In addition, the average gas used per vehicle monthly is maintained between 410-540 liter, showing the stable use of gas in the market. (5) There are a total of 65 gas refuel stations domestically at the end of December 2013, including the 8 that stop operating. Those operating are 57. After inquiring with operators, they indicate their decision to stop operating because of long term losses. These are characterized by not being the directly operated pure gas refuel stations of CPC so rank in the bottom in county, city, and annual rankings. (6) Analysis of the impact of the gas refuel stations ceasing to operate show that 8.9% of vehicles no longer use it when one station stop operating nearby, while the other vehicles move to neighboring gas refuel stations. (7) The BOE amended the gas refuel station management rules on Jan 6, 2014, loosening the diversification of operations and its related facilities of gas refuel stations. Compiling the status of better operating gas refuel stations, in addition to the convenience of in a prosperous location, promotion of discounts, also there are related attached subsidies (Easy maintenance facilities, washing facilities, etc.) or concurrently operating (convenience stores, parking , etc.). (8)To understand public views and recommendations, on-site visit to gas refuel station employer, refitting factory employer, and Hybrid-LPG vehicle owners. The gas refuel stations and refitting factory recommend continue to provide gas price subsidy to maintain the price gap between LPG and gasoline. In addition, promotion should be strengthened on the advantages of Hybrid-LPG vehicle. (9)Compiling the outcome from past years of price subsidy, the promotion of Hybrid-LPG vehicles can replace 1% of gasoline used, indicating gas subsidiary can diversify the use of energy. (10)According to MOTC’s survey of vehicle kilometer travelled (VKT) by taxis, the consumption amount of fuel costs saved can be deducted. In 2013, the unsubsidized price difference of LPG and gasoline can save NT$62,621 per year. With the EPA subsidy, an additional NT$5,380 can be saved. Hybrid-LPG vehicle use can save NT$68,001 per year. (11)Hybrid-LPG vehicles promotion purposes are to lower the impact of high gasoline price on the public, diversify the use of energy, and improve air quality. Economic incentive is the main consideration, knowing that taxis can save about NT$ 68,001 per year. Thus, in the short term, gas price subsidy is still needed to lower the impact of high gasoline price to maintain a stable difference of LPG and gasoline. In the medium to long term, the MOTC is studying measures such as collecting fuel taxes. In addition to implementing energy conservation and conforming to lower pollution to reduce social cost, it can also save fuel taxes of car owners and change to more economic form of transportation. (12)The current program has conducted two way communications with participants from the three gas price subsidy review and verification of business and communication meetings.
Keyword
Liquefied Petroleum Gas (LPG), Hybrid-LPG Vehicle, Gas Refuel Station
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