Inside the List: Poland moving to front of pack for LPG-converted cars

Julian Sikora, a Warsaw taxi-driver for 23 years, began using liquid petroleum gas (LPG), more than a decade ago. In that time he estimates he has saved enough money to afford two brand new cars. Sikora's choice of LPG, which helps power his Daewoo Nubira, is typical of the Warsaw taxi scene. According to industry officials, 80% of drivers adopt the alternative fuel. After they pay for the conversion, which on average costs between zł. 2,000-zł. 3,000 (depending on whether or not it is done at an authorized garage) the benefits are clear: LPG averages one-third the cost of gasoline in Poland, is environmentally friendly and is also the European Union's preferred fuel. "Switching to LPG was definitely worth it, within two months I was able to collect the costs of the conversion, after that it's all savings," Sikora said. Poland is currently the most active market in Europe when it comes to car LPG conversions, and as of January was the third-biggest consumer of LPG, also known as autogas, after Italy and the Netherlands, according to the Coalition for LPG (KNRA), a pro-autogas lobbying group.

"In 2000 there were 590,000 LPG-converted cars in Poland and in 2001 that rose by 140,000, so we are definitely the most dynamic market and by now are on the road to overtaking Italy and the Netherlands in LPG consumption," said Sylwia Popławska, KNRA's spokeswoman. With an added guarantee from the Finance Ministry that there won't be any tax surprises for LPG consumers, LPG is set to remain the most cost-effective fuel per kilometer for the near future, according to Popławska. "Wojciech Bronicki, head of indirect taxes at the Finance Ministry, talked at our most recent conference on May 8," Popławska said. "He assured continued cooperation. We do not expect any imminent tax increases." Bronicki told the WBJ that any tax increases would not be as high as January's hike - when the tax on LPG rose by zł. 0.07 per liter to zł. 0.22. "This doesn't mean there won't be any tax increases but that we will prepare the industry for them," Bronicki said.

Custom conversion LPG conversion is possible at hundreds of garages throughout Poland and filling up is equally easy with some 2,600-2,900 gasoline stations stocking the fuel throughout the country, Popławska said. "But there is a huge gray area in conversions, there are a lot of illegal operators," she said. The gray area, according to some industry officials, is as much as 70%. "It's currently bigger than the official business; this is a problem as standards are not assured, especially if it's not fitted properly," said Jerzy Maliński, owner of Polgas, which cooperates with Daewoo-FSO for authorized LPG conversions. "Those in the gray market also don't pay taxes, which possibly irritates the Finance Ministry and could penalize official workshops." But purchasing an LPG-ready new car can prove difficult - many automakers don't offer factory conversion and independent adapting can cost the car's warranty. Volvo, for example, does not provide any partnerships with authorized garages for the job to be done officially in Poland. "We didn't think there would be enough of a demand for it here to make it viable," said Barbara Sokołowska, Volvo's PR manager. "Our clients are not taxi drivers or the sort of people who are interested in saving money on fuel." Volvo offers a number of models in Belgium, the Netherlands and the U.K. factory-equipped with LPG conversions. But Daewoo-FSO is the only Poland-based automaker that offers assembly line conversions. "We do it for all our models, you can buy new ones with gas off the production line but if you don't want it immediately we can adapt it at any of our authorized points later and you won't lose your warranty," said Krystyna Danilczyk, Daewoo-FSO's spokeswoman. Many car producers, among them Fiat Auto Poland and General Motors, offer LPG conversions as an option, at extra cost, either upon purchase or later, with work done at their specific authorized workshops. But unauthorized conversions cost owners their warranty.

Risky fuel And there are risks with using LPG. The methane and butane mixture is highly combustible and if a conversion is badly fitted the chances of an explosion increase. The potential for disaster limits Europe-wide driving; Eurotunnel, for example, refuses to allow LPG-converted vehicles on board its trains and some ferry companies require owners to meet certain conditions, such as not starting motors on board, according to Sea France.