Nattachart Charuchinda, executive vice president for NGV at PTT, yesterday said he had met with Toyota president Mitsuhiro Sonoda to discuss PTT's promotional policies, supply, gas quality and NGV-station expansion.

"He wants assurances as Toyota plans to manufacture the NGV-fuelled Corolla Limo in the third quarter of this year, in accordance with the government's policy to have all new taxis fuelled by NGV," he said.

Toyota also plans to produce NGV-fuelled Corolla vehicles for motorists in general, as well as petrol-driven Hilux trucks.

Toyota's main concern lies in the rate of excise duty. The Excise Department is examining the possibility of reducing the excise on NGV vehicles from 30 per cent to 20 per cent.

Meanwhile, Nattachart said there had been no progress on the installation of NGV engines in pickup trucks due to the high cost of Bt120,000 per vehicle. PTT will therefore have to cancel its plan to supply NGV to 250,000 pickups.

He hopes that once Toyota's petrol-driven trucks are rolled out, the installation will become easier and the cost will fall to Bt40,000.

To promote NGV consumption, PTT has targeted to supply the natural gas to 4,000 privately owned public buses, following the Pollution Control Department's findings that Bangkok air contains more dust than is desirable, partly due to public buses.

To achieve the goal, PTT will make a special loan to bus operators for the engine installation, charging them annual interest of only 0.5 per cent. 

The operator of a bus targeted for engine modification will be loaned Bt500,000, while those destined for an engine overhaul will receive Bt1 million.

"If this project receives overwhelming interest, we're ready to tap more funds from the Environment Conservation Fund," Nattachart said.

PTT has loaned Bt400 million of the Bt5-billion budget it set aside for motorists who want to shift from petrol to NGV. Due to high oil prices, 70-80 vehicles have been modified daily.

Large vehicle operators have also shown interest in the programme, including Siam Cement Group, TPI Polene and Advance Agro, said Nattachart.

He added that PTT would maintain the price of NGV at Bt8.50 per litre until the end of the year. This would, however, be reviewed if the cooking-gas price subsidy is scrapped next year.

Nattachart said PTT was aiming to have 270 NGV stations by the end of the year. PTT is asking for Cabinet approval for the construction of NGV stations on roads that are less than 16 metres wide.