LPG prices set to rise with Carbon Tax
Written by Administrator   
Thursday, 23 October 2008

The Australian Federal Government with it's emmisions trading scheme has failed to take into account the impact on LPG.

The opposition has voiced support for the plan to offset the impact of the scheme on petrol, through a cut in the excise tax.
However, they have rasied concerns, believing the cut should exist for the life of the scheme, rather than merely the first three years.

Further concerns were raised by Mr Hunt, on the impact to the prices of Liquid Petroleum (LPG) and has called for the government to garuntee  the price of LPG will not rise.
 
Razor gang eyes early LPG aid cut
Written by Administrator   
Monday, 08 September 2008

THE Federal Government's razor gang is looking to dump the LPG conversion subsidy for car owners.

The LPG Vehicle Scheme provides subsidies of $2000 to the cost of an LPG conversion in new or used private vehicles.

The $670 million program also offers $1000 for factory-fitted LPG non-business vehicles.

The Government's Expenditure Review Committee decided last Friday to end the scheme well before its scheduled conclusion of June 2014, for a potential saving of about $400 million.

The fate of the subsidy, used by at least 120,000 motorists, will be decided when Prime Minister Kevin Rudd returns from his overseas trip.

Energy Minister Martin Ferguson has argued the subsidy should be kept.

Those hardest hit by an early end to the scheme would include outer-urban residents forced into long commuter drives by limited public transport.

Stephen Woodward, chief executive of LPG Australia, said yesterday long-haul commuters who had gone to LPG were saving from $150 to $200 a month in fuel bills.

Mr Woodward said he had just filled up his car at a Caltex service station in Redfern, Sydney.

LPG price was 61.9c a litre, while unleaded petrol was 148.9c.

"If the scheme is anything, it's more successful than anyone expected," Mr Woodward said.

But Mr Rudd in January revealed severe cuts would be made to government spending to ease pressures on inflation.

The razor gang has been given a goal of up to $14 billion in Budget cuts to cover the Government's election promises.

The previous government began the subsidy in August 2006, and latest official figures show it has been taken up by 114,000 motorists for a total outlay of $227 million.

Industry sources said the figure would be 120,000 to 130,000, and the amount outlayed about $240 million.

The LPG conversion has to be paid for first, and the rebate reclaimed through a Centrelink or Medicare office.

By one industry calculation, a Holden Commodore owner could save $1764 a year if they travel 23,000km, and LPG Autogas prices average 55c and unleaded petrol 140c.

As well as being cheaper, LPG is kinder to the environment, emitting 15 per cent less in greenhouse gases than petrol.
 
Queue up for LPG conversion
Written by Administrator   
Thursday, 07 August 2008
The waiting list for LPG conversion stretches to September.
This means motorists may have long delays to convert their car to running on LPG which costs less than 70 a litre. LPG Australia industry development manager Phil Westlake said the waiting lists for conversions had blown out from two months to about four. “High fuel prices and speculation that the Government would axe the grants scheme drove demand up through April and May,” he said. The LPG scheme provides a $2000 rebate for private motorists who convert a petrol-powered vehicle to run on LPG Autogas and $1000 for a new LPG vehicle. “One of the complicating factors is a slight shortage of cylinders brought on by speculation about the grant,” Westlake said. “The cylinder manufacturer decided not to increase production while they waited to see what the Government would do.” The Government reaffirmed its support for the grants scheme, allocating a further $19.1 million in funding in the federal Budget. “The Victorian tank manufacturers have now stepped up production,” Westlake said. Since the LPG scheme was introduced in August 2006, more than 125,000 private motorists have converted their vehicles or bought new LPG-powered vehicles. Westlake said Autogas cost about 90 a litre less than unleaded fuel, representing a 50 per cent weekly saving on the fuel bill. “While LPG is not immune from price fluctuations caused by world oil markets, Autogas typically sells for less than half the price per litre of ULP petrol,” he said. LPG conversions cost between $3000 and $4000, but Westlake said that with the $2000 federal grant, motorists would recover a $3000 conversion cost in about seven months, if they travelled 25,000km a year. Fuel economy for an LPG car is not as high as unleaded fuel, but it produces up to 10 per cent less carbon dioxide emissions, as well as lower emissions of other poisonous gases such as hydrocarbons, carbon monoxide and oxides of nitrogen. Westlake said Autogas was sold at more than 3200 national outlets and there were 2500 businesses across the country registered to perform LPG conversions. “So there are no issues of availability and there are plenty of qualified people to fit conversion kits,” he said. “Fuel volumes of LPG have picked up as well.” Chrysler Australia has announced LPG engine conversions were now available on its six and eight-cylinder 300C and Jeep Grand Cherokee models through all Chrysler dealers.
 
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