The move is part of the series of actions to cut carbon dioxide emissions in accordance with the policy set by the administration of President Ma Ying-jeou.

Effective immediately, the incentive will be given to 2,000 owners of vehicles newly purchased, or less than five years old.

Officials said the subsidy will account for around half of the costs for modifying the mechanical system - ranging from NT$45,000 to NT$60,000 depending on the models of the cars.

The hybrid system will enable drivers to switch alternatively between gasoline and LPG as the power source.

Car owners will be able to recoup the investment considering the soaring gasoline prices.

The most commonly used unleaded premium gasoline is presently priced at NT$36.1 per liter at the gas station following successive hikes in the prices of imported crude oil, compared with only NT$21.1 for LPG.

The real cost for LPG will be only NT$19.1 because the Cabinet-level Environmental Protection Administration (EPA) has been giving a subsidy of NT$2 per liter.

For a taxi adopting the hybrid system, the driver can save an estimated NT$10,000 each month and recoup the total remodeling cost in about three months.

There are currently 22 stations for refueling LPG around Taiwan, including five in Taipei City. The EPA aims to add 130 stations within five years.

The city government welcomes interested car owners to call 2728-7248 or 2728-7240 for relevant information, which is also available at the EPA Web site http://mobile.epa.gov.tw/lpg._9.asp.

Officials expressed the hope that the incentive will entice more motorists to modify their vehicles as early as possible.

They said that in addition to saving fuel costs, the modified cars can reduce an estimated 15 percent of carbon dioxide emissions, 71 percent of carbon monoxide, and 89 percent of other hazardous substances for better air quality.