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Ian Tonkin

17th September 2009
Page 35
Page 35, 17th September 2009 — Ian Tonkin
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

CM was looking for the van that costs less to run on a pence per mile basis (factoring in fuel and the £8 congestion charge].

For London operators, LPG was cheapest over our route, costing 9p per mite, followed by the diesel and petrol at 42p and 45p respectively. We were surprised at how economical the Nemo was, using just under 3.5 litres of fuel, a tad more than the diesel Fiorino.

So if LPG is nearly 50% cheaper to run than diesel, why hasn't the industry switched over? Not all LCV operators work in central London, so they wouldn't need to pay ES a day in tolls, and, operators battling to stay afloat couldn't justify spending up to E2,000 on an LPG conversion. On the face of it, converting to LPG Looks like an attractive proposition, but LPG vans tend to depreciate quicker than petrol and diesels, and many van-makers will void warranties if the original powertrain has been modified don't forget about the higher insurance premiums, too. And to top all that off, LPG hasn't received sustained government suport to encourage widespread market acceptance.

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People: Ian Tonkin
Locations: London

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