Venezuela's government eliminated a decree ordering the car industry to install natural gas tanks on all new cars starting July 1, and changed the resolution - extending the deadline to April 2009. The new resolution was published Tuesday in the government's Official Gazette. The initial plan, which was published July 1, said starting on that date carmakers must equip their automobiles with natural gas tanks so they can run on natural gas as well as regular fuel. Venezuela's car distribution association responded by calling on all dealerships to halt sales, fearing sanctions if they continued selling cars without the special tanks. Car industry representatives met last week with the government to explain manufacturers didn't have the capacity to install the so-called dual gas tanks on all new cars and secured an extension, said Rafael Carias, head of Venezuela's car dealership association. 'The decree gives us an extension. It also sets a clearer regulatory blueprint as to how to go about installing the new gas tanks,' said Carias. He added the association lifted its recommendation to dealerships to halt sales. At least 30% of all new cars sold after April 1, 2009 must be equipped with the new natural gas tanks, according to the resolution. The government plan aims to increase the use of natural gas as fuel instead of traditional gasoline, which is among the cheapest in the world and is heavily subsidized by the government. Gasoline prices in Venezuela average just $0.18 per gallon.
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