Press Releases

Fueled for success

Manila Autogas paves the way for growth in LPG for cars

Article by Paul Anthony A. Isla
Personal Fortune Magazine, page 12 of March 2007 issue

JEROME GUITIERREZ'S father converted his gasoline-fueled vehicle to run on liquefied petroleum gas, or LPG, 20 years ago.

"I remember our driver often complained that it had a foul smell," Gutierrez shares. "But the time then was not right as the conversion kits were not perfect yet. But the third-generation kits nowadays are really safe."

The right time, according to Gutierrez, now president and chief executive of Manila Autogas, was last year. And 2007 and 2008 will be crucial as the technology opens larger windows of opportunities.

Gutierrez certainly has a full grasp of the LPG business. For 30 years, his family ran the Manila Gas concession, providing LPG to commercial, industrial and residential consumers.

Autogas refers to LPG used for the propulsion of vehicles. Even before setting up the innovative business, which seeks to become the preferred LPG filler and autogas kid installer in the country, Gutierrez already converted his vehicles to run on the alternative fuel. "I save around P1,000 a week in fuel cost," he says.

It is precisely the skyrocketing cost of fuel that is convincing consumers to shift to LPG, he says. Gutierrez estimates motorists can save about 40 percent. "If you used to consume about 6km a liter on gasoline, you'll get to consume about 5km a liter with LPG, but the difference is about P10 to P15 a liter. Autogas is priced around P22 to P23 a liter, while gasoline is around P35 to P38," he explains.

Manila Autogas currently owns and operates six refilling stations and is set to open three more -- in EDSA, Balintawak in Quezon City ; J.P Rizal in Makati and MIA Road in Paranaque -- by March. It is also eyeing Cebu and Davao, and even countries like Vietnam and Malaysia.

Gutierrez concedes that he expects others to jump into the bandwagon. "The industry will experience something similar like the lechon manok, where refilling stations will be mushrooming and a lot will try to imitate and replicate the business even if they're not into the business and don't know anything about it."

After focusing on public transport groups, particularly taxi fleets, the industry is now looking to target private car owners.

"It's really just a matter of educating consumers. When they find out the truth and benefits and if it's really safe they will switch to it," he says.

"I have four kids myself, so if it's not safe why will I compromise the safety of my family? The safety of the product really depends on who installs the product."