Sri Lanka to go green via Euro 4
View(s):Sri Lankans may begin breathing little easier in the New Year not because of the economic recovery or elections but because of the introduction of Euro 4 fuel standards to ease air pollution.
Vehicles with engines that meet the Euro 4 standard should emit 68 per cent less particulate matter (PM), 57 per cent less nitrogen oxide, and 50 per cent less carbon monoxide than the Euro 2 standard that is currently in use in Sri Lanka since 2003.
Presenting the Budget 2018, Finance Minister Mangala Samaraweera announced that “from next January, Sri Lanka will follow the environmentally-friendly Euro 4 emissions standard as adopted by European nations”.
The government has taken a correct decision to make Sri Lanka Green and the introduction of the Euro 4 standard is in the right direction towards this end.
However the authorities should extend the period of implementation of this decision by six months or one year as motor traders have already ordered vehicles that are Euro 2 or 3 compatible engines which will arrive in the island early next year.
Franchise holders should be given some grace period to bring down vehicles with Euro 4 engines.
Indian and Chinese made vehicle engines are not compatible for Euro 4 standard fuel and such vehicles have not been provided with basic safety features such as airbags and anti-lock braking systems which will be made compulsory for all car imports from next year.
On the other hand the Ceylon Petroleum Corporation (CPC) and Lanka IOC should give a certification that their petrol sheds are shifted to Euro 4 from Euro 2 and 3.
This transition should be phased out as the country’s fleet of vehicles is currently compatible with Euro 2 standard and it is difficult to remove these vehicles off the roads within a short period.
The CPC and Lanka IOC should continue to serve Euro 2 and 3 standard fuels for some time while selling Euro 4 fuel for newly imported vehicles.
The introduction of Euro 4 will also help to get rid of the 3-wheeler menace as these tuk-tuks run on engines only compatible to Euro -2.
The 3-wheelers are most vulnerable to accidents and environment pollution and many other criminal and nefarious activities.
The import taxes on a diesel 3-wheeler will be increased by around Rs. 50,000 in order to encourage the transition into environmentally friendly 3-wheelers, the 2018 budget proposal highlighted.
The Government’s plan is to reduce carbon emissions to a considerable level by 2025 and completely go green by 2045.
There are 1.5 million 3-wheelers on local roads and the government’s intention is to take out all those 3-wheelers from operation in a phased out time-line by providing electric tuk-tuks on easy payment terms and introducing 10:90 loan to value ratio for leasing .
This is a welcome move in tackling the 3-wheeler menace and air pollution.
But the government should stick to this policy without changing it even if there is political pressure.
According to latest statistics, the active vehicle fleet in the country is 4.5 million, annual fuel consumption 2.7 million tons and average fuel economy 0.025 litre/passenger-km.
The data shows that there is an urgent need to implement world fuel standards to control air pollution in Sri Lanka.
Use of hybrid vehicles has improved the fuel economy by 15 per cent. But the Government should take measures to implement world fuel standards as it is essential to import cleaner fuel.
It is not a difficult task under the present set up of declining fuel prices in the world market.
Meanwhile European cars with less engine capacity might dominate the Sri Lankan market surpassing Japanese vehicles with the implementation of engine capacity formula for vehicle import taxation instead of CIF value calculation.
This will contribute to the government’s efforts to go green as those European fuel efficient cars with modern technology and low greenhouse gas emissions can help the environment.
Under this new formula, the prices of Toyota Axio, Toyota Aqua, Honda Velez and Honda Grace will go up by around Rs. 750,000 following the increase in the taxes.
Prices of the 990 cc Toyota Vitz is expected to drop by approximately Rs. 1.11 million, while the 990 cc Toyota Passo is projected to fall by over Rs.1 million.
However, motor traders anticipate the price of the 1,290 cc version of Toyota Vitz to rise by Rs. 283,450.
In the luxury category, it is expected that prices of the Toyota Prado will rise by approximately Rs. 5 million, Toyota Premio/Allion by Rs. 200,000, Nissan X-Trail (Hybrid) – Rs. 1 million, Mitsubishi Outlander (Hybrid) by Rs. 1 million, Toyota Prius (Hybrid) by Rs. 1 million and the 4600 cc Land Cruiser by a mammoth Rs. 23 million.
(The writer is Sathosa Motors PLC Managing Director and a former Chairman of the Ceylon Motor Traders Association)