Techno-economic Analysis of Liquid Petroleum Gas Fueled Vehicles as Public Transportation in Indonesia

Muji Setiyo, Muji Setiyo, Sudjito Soeparman, Nurkholis Hamidi and Slamet Wahyudi
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Muji Setiyo: Department of Mechanical Engineering, Faculty of Engineering, Brawijaya University, Malang, Indonesia,
Muji Setiyo: Department of Automotive Engineering, Faculty of Engineering, Muhammadiyah University of Magelang, Magelang, Indonesia,
Sudjito Soeparman: Department of Mechanical Engineering, Faculty of Engineering, Brawijaya University, Malang, Indonesia,
Nurkholis Hamidi: Department of Mechanical Engineering, Faculty of Engineering, Brawijaya University, Malang, Indonesia,
Slamet Wahyudi: Department of Mechanical Engineering, Faculty of Engineering, Brawijaya University, Malang, Indonesia

International Journal of Energy Economics and Policy, 2016, vol. 6, issue 3, 495-500

Abstract: In Indonesia, the use of liquid petroleum gas (LPG) in vehicles has been promoted through government policy since 1988. However, the progress has not significantly run. Therefore, this paper presents the techno-economic analysis of LPG as road vehicles fuel alternative in comparison with gasoline RON 88 and RON 92 for public transportation in Indonesia. The techno-economic analysis is considered running cost, break-even point (BEP) distance, net present value (NPV), internal rate of return (IRR), payback period (PP), and sensitivity analysis. This analysis indicates that the BEP distance of public transportation vehicles are approximating at 55,351 km compared to gasoline RON 92 and 93,168 km compared to gasoline RON 88. Meanwhile, the result of the investment analysis shows that the investment feasibility indicators which include NPV, IRR, and PP show the investment was feasible but the investment is sensitive to fuel cost ratio between LPG and gasoline.

Keywords: Liquid Petroleum Gas Vehicles; Running Costs; Investment Feasibility (search for similar items in EconPapers)
JEL-codes: M21 O31 Q43 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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