The Commodity Futures Trading Commission has filed a law suit against BP in North America, accusing the company of buying large propane (LPG) stocks and withholding them from the market. BP controlled 90% of the domestic market for propane, forcing buyers to come to BP in order to heat houses, and fuel cookers. BP has been able to dictate the market price of propane, which is not only illegal but is also a huge threat to market integrity. BP sent propane prices rocketing to a 40% increase, only adding fuel to the existing problems of climbingpetrol prices.

This is not the first time that big oil and gas companies are being accussed of anti-competitive behaviour in the LPG market. In the UK, Shell, BP, Calor and co control around 90% of the domestic LPG market. These companies were subjected to investigations by the Competition Commission in 2004. Shell’s response to the investigations can be found here.

Edinburgh recently showed huge aversion to inner-city congestion charges, with more than two thirds of people saying “no” to the charge. The aim was to tackle air pollution and reduce emission levels in Scotland’s capital city. Allan Jackson, Tory transport spokesman addresses the issue:

“We continue to work hard at lowering levels of NO2 in areas of concern to ensure that we meet air quality levels by 2010. We encourage bus operators and the taxi industry to ensure that total vehicle emissions and emissions per passenger are lowered as improvements to engine technology become available.”

The benefits of congestion charging include less traffic, cleaner air and public transport improvements. Individuals wishing to address these issues can make stands of their own urges the Cockburn Association. Using alternative means of transport when appropriate will improve congestion problems, helping to improve the air quality in the capital. Alternative fuels are becoming increasingly popular among high mileage users where public transport is not always on option. Studies show that LPG vehicles produce up to 98% less NOx than diesel and petroleum vehicles. Not only will LPG users make savings of up to 50% per year on fuel costs, but they will assist in improving the environment around Scotland’s prided Heritage Site.

My last posting addressed the eventual launch of a low carbon grant scheme that would apply to some alternative vehicles and many of you have been asking about LPG car grants. Well, some happy bureaucrats made a “well-considered” decision not to provide financial support for individuals and organisations that are willing to consider alternative vehicles. This is strange because the UK position contrasts starkly with the position of other European countries such as France and Italy that offer incentives to prospective LPG motorists. What does this mean for Fuelture? Well, we never built the company on the premise of a re-introduction of government grants. However, our investments are being made under the assumption that we will have a consistent policy from the UK government. I don’t think that is too much to ask –the environment is too important for dilly-dallying!