PTT Plc has increased the marketing fee for the sale of natural gas for vehicles (NGV) to Bt2.33 per kilogram, up from Bt0.80, as part of the national plan to promote the use of NGV among motorists.

"We're initially offering this huge fee to stations in Bangkok and peripheral provinces, as we want to focus on that area first. At the new level, the fee should encourage other oil traders to pay more attention to NGV distribution," PTT president Prasert Bunsumpun said yesterday.

Shell Thailand and Petronas also plan to sell NGV, Prasert said.

PTT will handle the distribution for the sale of NGV in the provinces.

Besides the higher marketing fee, PTT would also invest in the necessary dispensers. Bangchak Petroleum Plc's NGV station, which was inaugurated yesterday, is the first to be offered the incentives.

Energy Minister Viset Choopiban said at the inauguration that the number of NGV-fuelled vehicles had reached 14,000. And the Bangkok Mass Transit Authority plans to convert the engines of its buses to be NGV-compatible within two years.

"The conversion of every 1,000 buses would cut the state medical bills for environment-related health problems by Bt2.5 billion to Bt5 billion a year," Viset said.

With several car companies interested in manufacturing NGV-fuelled vehicles, including Toyota, which is launching an NGV-fuelled van here soon, the minister said this should help encourage higher consumption of NGV and relieve problems from high oil prices - and help protect the environment.

Prasert said PTT would also seek to distribute NGV at 21 gas stations. They are expected to sell NGV from next month.

To promote gas powered cars, Prasert said PTT would maintain NGV prices at Bt8.50 per kg for two more years.

"Though oil prices have been escalating, the NGV price should never exceed half the diesel price," he said.

He was said the number of NGV stations would reach 200 by the end of this year as planned, through stations owned by PTT and other oil traders.

This would require an outlay of Bt4-6 billion.

Bangchak president Anusorn Sangnimnuan said the company plans to open two more NGV stations this month, and 17 more this year. It aims to sell 200,000 kg of NGV per month, or 2-3 million kg per year.

"I believe our participation will encourage other oil traders to start selling natural gas," he said.