LPG conversion subsidy to ease motorists' woes

The Federal Government's proposed $1000 subsidy would be good for the country and good for motorists wanting to save money on fuel, the Tasmanian Automobile Chamber of Commerce (TACC) said today.

TACC General Manager Malcolm Little said an average family car's conversion, one doing around 25,000 kilometres per year, is paid off in under a year. "LPG is the obvious and sensible alternative to petrol,"

Mr Little said "This country has abundant LPG and it just makes sense that the Government sets policies to encourage motorists to convert their cars to LPG "LPG can halve - and better - monthly fuel bills.

It is also kinder to our environment. "With LPG, motorists can run a large family car for less than the cost of running the tiniest fuel-miser on petrol." Mr Little said there was currently 76 cents per litre (CPL) differential between LPG and petrol.

"Assuming the car costs $1,800 to convert to LPG (post the $1000 Government subsidy), and assuming a large car consumes 12 litres of petrol per 100km, then the 76 cent differential between petrol and LPG pays for the conversion in under a year," he said. "And even allowing for the slightly higher fuel consumption with LPG, some cars use up to 10% more LPG fuel per kilometre travelled, the savings still easily pay for the conversion."

"Australia is currently running a massive current account deficit due in the main part to wildly escalating fuel imports.Petrol, light oil and diesel now accounts for well in excess of 50% of Australia's trade deficit. Supporting LPG and encouraging more motorists to convert will help reduce our dependence upon imported oil and petrol," Mr Little said.

For more information, contact Malcolm Little at TACC on 03 6278 1611or 0408 398 670   

LPG Subsidy extended

There was speculation the Expenditure Review Committee had advised that the subsidy be axed and rumours were rife that Mr Swan would duly oblige.

But in the weeks leading into the Budget, VACC & TACC along with the Australian Liquefied Petroleum Gas Association (ALPGA), lobbied strenuously to save the subsidy.

“When the rumours started to fly, VACC took immediate action. A letter was sent to the Minister for Finance, Mr Lindsay Tanner, opposing any changes to the conversion subsidy. And members of the VACC Alternative Fuels Specialist Category travelled to Canberra and fought hard for its retention,” TACC General Manager, Malcolm Little, said.

“LPG makes sense environmentally and economically. It is a clean, efficient fuel and produces amongst the lowest of life-cycle greenhouse gas emissions of all commercially-available automotive fuels.

“LPG is also around half the price of petrol and diesel. The cost savings at the pump and the increase in engine life bring considerable financial benefits to motorists.

The Budget delivered an unexpected double dose of good news for motorists wanting to convert their vehicles to LPG. The Government also announced it will provide an additional $19.1 million in 2007-8 for the LPG scheme to meet additional demand for LPG conversions in 2007-8.
 
“We thank the Government for this additional funding over the next financial year. However VACC & TACC will continue to push for the long term future of the subsidy and ensure its security for the full period to 2014. The benefits of LPG to the Australian economy are immense. Our vast reserves of LPG have the potential to reduce the nation’s dependence on imported fuel and to greatly benefit our massive trade imbalance.

“We congratulate the Treasurer on recognising the value of the subsidy and the importance of LPG as Australia’s alternative fuel,” Mr Little said.