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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Muji Setiyo & Muji Setiyo & Sudjito Soeparman & Nurkholis Hamidi & Slamet Wahyudi, 2016. "Techno-economic Analysis of Liquid Petroleum Gas Fueled Vehicles as Public Transportation in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 495-500.
    • Handle: RePEc:eco:journ2:2016-03-14
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    References listed on IDEAS

    as
    1. Aliyu Barde Abdullahi, 2014. "Modeling Petroleum Product Demand in Nigeria Using Structural Time Series Model (STSM) Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 427-441.
    2. Budya, Hanung & Yasir Arofat, Muhammad, 2011. "Providing cleaner energy access in Indonesia through the megaproject of kerosene conversion to LPG," Energy Policy, Elsevier, vol. 39(12), pages 7575-7586.
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    Cited by:

    1. Antonina Kalinichenko & Valerii Havrysh & Igor Atamanyuk, 2019. "The Acceptable Alternative Vehicle Fuel Price," Energies, MDPI, vol. 12(20), pages 1-20, October.
    2. Virda Hersy Lutviana Saputri & Muhammad Hisjam, 2018. "Techno-Economic Analysis of Fuel Vehicles as Logistic Distribution Facilities in Indonesia by Considering the Carbon Emission Cost," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 35-38.

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    More about this item

    Keywords

    Liquid Petroleum Gas Vehicles; Running Costs; Investment Feasibility;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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