Peru’s government pays for old diesel engine cars

(LIP-ir) — As oil prices skyrocket to nearly $106 per barrel, Peru needs to change its main fuel source to something that is cheaper, said Peru’s Minister of Energy and Mines, Juan Valdivia.

One of Peru’s choices, which has eagerly been pushed by the government, is the use of natural gas.

In an effort to foster the use of natural gas in the Andean country, the government has created a series of programs that make it easier to purchase a natural gas vehicle.

Garcia’s administration has decided to tackle the taxi problem first.

By beginning the "Mi Taxi" program, the government has begun replacing many old vehicles with newer ones that run on natural gas. To complement this program it was announced that the "Chatarreo" program would soon be under way.

The Chatarreo programs gives the owners of diesel engine vehicles (1600cc) that are 10 years or older the option of handing their car over to the government for a bond.

Peru’s government recently announced that the bond would be $2,500. The government will begin issuing bonds as soon as April, said Minister Valdivia.

He explained that the Ministry of Transportation still needed to provide a list of companies that would receive the vehicles and turn them into scrap metal.

Furthermore, Valdivia confirmed that his ministry had requested $50 million from the Ministry of Finance to fund the Chatarreo program.