The Cabinet-level EPA has recently shaved the subsidy for car owners who pump liquefied petroleum gas (LPG) into their vehicles to NT$2 per liter, down from NT$2.50 in 2005 and NT$3 in 2001.

The successive hikes in the prices of imported crude oil and gasoline have made LPG prices about NT$13 cheaper than unleaded premium gasoline per liter.

This has become a major incentive for more motorists, especially taxi drivers, to modify their automobiles.

There are currently more than 30,000 taxis using LPG. The number of private cars using LPG is increasing at a pace of 300 to 400 units each month.

The association formed by operators who provide LPG for vehicles protested the EPA move, saying the government is back-pedalling. They charged that the government is abandoning its longstanding policy of taking concrete measures to improve air quality.

The EPA has tried for years to encourage motorists running on gasoline to switch to LPG for the sake of better air quality.

The association asked the EPA to raise the subsidies to people driving LPG vehicles.

But EPA officials said it is impossible for the agency to offer higher subsidies. The officials said the EPA may even consider scrapping the LPG subsidy altogether next year.

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