Alternative gas continues to increase in popularity throughout Peru. This increase has reduced the number of traditional petrol stations in Peru, opening the door for widespread growth of liquid petrol gas (LPG or LP) and compressed natural gas (CNG or NG) stations. This means that drivers must invest in converting their cars, but most find it is well worth the cost. Here is a closer look at how and why the number of petrol and alternative gas stations have changed over the years.
It all began in 1999 with the enactment of Law 27,133. The goal of this law was to explore, produce, and improve distribution of natural gas. Also, to explore environmentally-friendly alternatives. The government saw that the addition of alternative fuel could provide significant cost-savings to the end-users, create new businesses, and deliver self-sufficient solutions for domestic, electricity, transportation, and industrial use. With energy independence comes stability, and with decreased transportation and utility costs—comes a greater quality of life, and more money reinvested into other businesses and industries.
Between 2004 and 2014 CNG consumption in Peru has risen by an unprecedented 713%. While the current growth is not as rapid, it continues to increase year-over-year. When speaking of oil, consumption grew 33% over the same timeframe, and also continues to increase year-over-year. Exploration has led to the finding of some substantial natural gas reserves, much of which is being used locally—but export of fuel has also increased. Peru is not 100 percent CNG independent, but is able to supply approximately 95 percent of their internal demand.
There are now over 800 LPG gas stations in Peru, with over 240 thousand drivers having converted from gasoline or CNG to LPG. The cost savings is the number one priority, and the average driver cuts their transportation fuel bill by between 50 and 60 percent—by about $0.50 cents per gallon—when switching from natural gas to LPG. Cost savings when switching from gas to LPG is also around 50 percent.
The cost-savings benefits for both energy and transportation, make driving more affordable for residents across Peru. With more people on the road, and driving longer distances, comes a growing need for fueling stations and dispensaries. This of course includes major corporations, but also a growing number of independently owned fueling stations—many of which have attached convenience stores.
Fuel and gas stations across Peru will continue to increase, and continue to evolve. To remain competitive, many will offer a variety of fueling options—while others will remain dedicated to their environmentally friendly and alternative-fuel business model.