Turkey's 'resilient' autogas market faces EV challenge

: LPG
26/10/20

After decades of investment and support, the world's largest autogas fleet faces stiff competition from electrification, writes Yasmin Zaman

The Turkish autogas sector is one of the world's largest and most resilient autogas markets thanks to its substantial vehicle fleet, robust regulations and extensive refuelling and vehicle conversion infrastructure, delegates heard at Liquid Gas Week in Istanbul this month. But the rapid growth of electric vehicle (EV) sales is emerging as a significant long-term challenge for the sector.

Autogas is likely to retain its significant share of the Turkish car transport sector for many years, even as EV sales increase, industry representatives told the conference held by the World Liquid Gas Association over 12-16 October. Turkey has around 5.3mn autogas vehicles on the road, they said, the largest fleet in the world — its demand of 3.3mn t in 2025 was second only to Russia's 3.5mn t, Argus data show.

The market's strength stems from the foundations laid in 1996, when the industry focused from the outset on positioning autogas as a branded, reliable fuel rather than a commodity, helping to build trust among motorists, Ipragaz's chief executive Eyup Aratay said. Initial demand came largely from taxi operators seeking lower-cost fuel, but adoption accelerated after 2000 as more consumers embraced LPG conversions. This growth has continued even through periods of economic turbulence and even during the Covid-19 pandemic, delegates heard, although the market is now entering maturity after decades of expansion.

Strong regulations and ensuring product quality were key contributors to the market's longevity, speakers said. Maintaining strict standards for autogas quality continues to be essential to preserving consumer confidence, Milangaz's LPG operations director Can Toydemir said. Imported LPG must meet domestic specifications before entering storage terminals, ensuring compatibility with the country's autogas distribution network and vehicle fleet.

Turkey has also developed a comprehensive regulatory framework for vehicle conversions to autogas. Certified workshops carry out conversions, while installed systems are subject to technical standards and periodic inspections designed to ensure continued safety and reliability. This combination of quality controls and assurances has helped address concerns about the safety of LPG-powered vehicles and supported wider adoption across the country, industry executives said.

Against the current

A continuing advantage for the sector is the ability to convert existing gasoline vehicles during the country's present economic headwinds and rising gasoline and new vehicle prices. But despite the sector's strong foundations, industry participants acknowledged that EVs are becoming an increasingly significant competitor. These account for around 30pc of vehicle sales in Turkey today, according to Toydemir, as more supporting infrastructure is rolled out. But Toydemir remains optimistic for the outlook of Turkish autogas given the vehicle fleet should continue to grow in the coming years and more vehicles are converted. Approximately 70pc of vehicles in Turkey can potentially be converted to autogas, he said.

Gasoline vehicle conversions are likely to sustain Turkish autogas demand in the medium term, slowing the impact of rising EV adoption, the industry experts said. Over the longer term, the benefits of affordability, and robust regulation and safety standards that helped establish LPG as a mainstream road fuel will increasingly face stiffer competition from electrification.

For now, the country's large LPG vehicle fleet, mature conversion network and established regulatory framework will provide a strong foundation for demand. But as EV adoption accelerates, the long-term trajectory of Turkey's autogas market will hinge on whether LPG can maintain its economic advantage in an evolving transport landscape while continuing to attract new vehicle conversions of an ageing gasoline fleet.

Top 10 autogas markets
	Demand mn t	Fleet mn	Retail sites '000

Russia	3.5	3.1	4.7
Turkey	3.3	4.9	10.1
South Korea	2.5	1.8	1.9
Algeria	1.9	1.1	1.4
Kazakhstan	1.8	0.7	3.1
Poland	1.8	3.2	7.3
Italy	1.6	2.9	4.6
Mexico	1.4	0.4	2.3
Thailand	1.0	0.8	1.7
Ukraine	1.0	1.6	2.8
— Statistical Review of Global LPG

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The need for energy resilience and flexible fuels in more volatile times provides the LPG industry with a huge opportunity London, 20 October (Argus) — The IEA's proposal for a global LPG reserve mechanism could create the strongest case yet for expanding storage infrastructure worldwide. IEA executive director Fatih Birol and Turkish energy minister Alparslan Bayraktar told delegates at the World Liquid Gas Association's (WLGA) Liquid Gas Week in Istanbul on 14 October that LPG needs to be at the centre of the global energy security conversation. The agency is working with governments and the industry on developing an LPG security mechanism, and could unveil a new policy paper at the next summit on clean cooking in Africa in Nairobi , Kenya, on 27-28 January. For an industry that has long made the case of LPG's value as a clean and easily transportable fuel for cooking in the developing world, backed by a global supply chain, this high-level emphasis on the need for protection from supply shocks amid the Iran war signifies how far LPG has come under the clean cooking movement. The world is "facing the largest energy security threat in history... with more than one-third of LPG trade passing through the strait of Hormuz, mainly to Asia", Birol said. Noting more than half of all LPG is used in homes for cooking and heating, he added: "The current energy crisis is directly affecting the heart of daily life." Energy security is also a matter of national security, Bayraktar told the audience. "We cannot afford to depend on a single energy resource, a single supplier," he added, nor on any one technology or transport route. That "is precisely why LPG deserves greater attention". LPG "is sometimes a little bit overshadowed by its big brothers, natural gas and oil, but its contribution to energy security should not be underestimated", Bayraktar added. "With its flexibility, portability and accessibility, LPG provides an important alternative for millions of consumers, particularly in times of supply disruptions." Turkey has a large LPG market, as the world's second-largest autogas consumer. This means that industry must seek to "strengthen supply chain resilience through diversified sources, reliable infrastructure and stronger international co-operation", he said — something an emergency reserve scheme could help deliver. The need for compact and portable energy such as LPG is increasing despite the electrification drive, Turkish distributor Aygaz's chief executive Melih Poyraz said. "LPG is needed to keep energy flowing when other systems fail," he said. The need for energy resilience and flexible fuels in more volatile times provides the LPG industry with a huge opportunity, distributor DCC chief executive and WLGA president Donal Murphy said. But this opportunity requires substantial investment — in tanks, terminals and caverns. Japan as a key LPG importer has proven it is possible, with emergency reserves of around 2.5mn t , or 90 days worth of imports. India has possibly been the worst affected by the Mideast Gulf war given its limited reserves, prompting the government to ask state-run refiners to build at least 30 days of stockpiles . India is planning to build more storage capacity, while Rwanda and Vietnam are increasing strategic stocks. An IEA framework would give investors the confidence to back new storage projects. Supply is not a concern, with millions more tonnes of LPG expected to flow from the US, as well as more from the Middle East, Argentina and Canada. The easiest solution Greater storage capacity and emergency reserves will be essential to the expansion of clean cooking across Africa. LPG is "the easiest solution today" for Africa's clean cooking transition, Birol said, and the infrastructure developed under a reserve scheme would help bring LPG to millions more homes in the region. The clearest signal from the conference was that governments, the IEA and industry are now pulling in the same direction when it comes to LPG supply resilience. What matters now is whether the money follows. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Q&A: IEA's Birol on LPG's role in African clean cooking

26/10/20

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26/10/20

Q&A: IEA's Birol on LPG's role in African clean cooking

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EU rules mount for Europe's LPG sector

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