LPG Grant Scheme: Your Say

News Editor - 13/Oct/2006

Melbourne, Australia — Since the Australian Federal Government announced it would offer motorists cash incentives to convert to or buy LPG-fueled vehicles, the numbers of adopters of LPG (liquefied petroleum gas) in Australia has skyrocketed.

LPG Australia released a paper recently that indicates private motorists have acted swiftly in lodging claims for the Australian Government's LPG Vehicle Scheme, which opened officially last Monday. The LPG industry peak body has welcomed the response from motorists in making the switch to autogas, with over $3.5 million in grants approved.

Phil Westlake, LPG Australia's Industry Development Manager, said the autogas industry had responded to the additional demand by producing 68 per cent more LPG cylinders (11,129) for the month of September compared with 6621 in August, which in itself was already a record rise.

LPG vehicle installations to existing vehicles have increased 101.5 per cent year to date (40,828) while new LPG vehicles sales have increased 64.5 per cent year to date (10,224). The latest figures from automotive industry statistician VFACTS show that all new autogas vehicle segments have increased, with the largest increase occurring in the private segment, says LPG Australia.

New autogas passenger private vehicles sold in Australia have grown by 226.2 per cent year to date and light commercial private vehicle sales are up by 147.8 per cent. Meanwhile, new autogas passenger non-private vehicles have increased 43.5 per cent year to date and light commercial non-private sales have increased by 91.9 per cent.

"The LPG Vehicle Scheme offers consumers an inexpensive, widely available and viable alternative to petrol-powered motor vehicles," said Mr Westlake. 

"In addition, by switching to autogas, private motorists are helping our environment by reducing greenhouse gas emissions. Motor vehicles running on autogas typically produce about 15 per cent less greenhouse gas emissions and only one-fifth of the toxic emissions of their petrol-driven counterparts."

Private motorists wanting to convert to or buy an LPG-powered vehicle are eligible to receive a $2,000 subsidy for an autogas conversion or a $1,000 subsidy for a new autogas vehicle, andthe Australia Government's LPG Vehicle Scheme will run for eight years.

Since the Australian Federal Government announced it would offer motorists a rebate of $1,000 for any new LPG vehicle purchased, and also $2,000 for those who convert their petrol cars to LPG gas, we've received many letters on the topic. It's now evident the new LPG rebate scheme has reignited interest in LPG, and will continue to do so in the future.

If you haven't had a look through the Letters Page, here's some of the reader feedback we've been sent over the last few months. If you want to make a comment on the LPG rebate scheme, send us your comments.

LPG Vehicle Scheme: Your Say

• The LPG subsidy plan is discriminatory because not all car owners can access it. 
  
  I cannot because my car is not 'suitable for conversion' according to the two conversion companies in Hobart. The car in question is a 2.0-litre VW Golf. Apparently equipment is not available for this car.
  
  The Government should be making other options available to those that can't use the LPG scheme ... i.e. subsidised petrol and/or subsidised ethanol/petrol. The situation is similar to the HIBIS broadband subsidy scheme: Telstra was obliged to provide ISDN service to those that could not get Broadband, and if they could not provide ISDN, consumers were eligible for the full satellite subsidy. So we have a precedent for anti discrimination rules.
  
  - M.T. (10/10/06)

• I am happy with the LPG deal. But do you get the money before or after installation?
  
  - Enu (18/8/06)
  
  Editor's Note: To get the $2,000 rebate from the government you have to pay for the conversion yourself, and then fill in an application form and together with the receipt for the conversion work, you can collect your tax-free grant at a Centrelink or Medicare office. Any conversion done on or after the 14th of August 2006 is eligible for the rebate. However, the rebates cannot be collected until October the 1st, 2006, and the application forms became available in September, and they too can be collected at Centrelink or Medicare shop fronts. There's also a number you can call if you have any questions: AusIndustry Hotline - 13 28 46.

• I think the Federal Government's offer to motorists to convert to LPG is a bit unfair to the motorists who have already converted to LPG way before this offer. I have been using LPG for twenty years now, and there are a lot of others too. Therefore we should get something in return. Kind Regards,
  
  - Garry (10/10/06)

• The new LPG grant is a welcome opportunity, but this is early days so the information is still not available. My concern is of the initial cost of the gas conversion to my older car. I am on a disability payment and rely heavily on my car for day to day activities, thus I will not have a spare $2,000 to make the conversion. Catch 22 or is there a way of getting out of this loop?
  
  - Pat M. (25/8/06)

• Have read bits of people's letters, particularly about Gas Conversions.
  
  I find the whole gas conversion quite inequitable. Firstly, you have to have a petrol guzzling car to get any benefit, cost and space wise (imagine a gas tank in a Corolla or similar). Whatever happened to buying smarter, and focussing on smaller or mid-sized cars? Also, diesel would be a better option but no rebate for that!
  
  - Dergy (5/10/06)

• I feel that we will be paying for the gas rebate in the way of increased gas prices. I have a gas car and have seen how the gas price went up at the same rate as petrol, and since then the petrol has come down yet I still see the gas price remain at the higher cost. Why has petrol come down to $1.10 per litre and gas is still $0.59c per litre? I am convinced that gas users are subsidising this new gas scheme.
  
  - VRX 35 (2/10/06)

• If greenhouse gas emissions are the focus of our Government's LPG conversion scheme, why are business and fleet cars (like taxis) excluded from susidies, knowing that a private family car runs approximately 300 kilometres per week, and a taxi does about 2000km?
  
  - Luca (1/10/06)

• Hi there, I have been sourcing information on the opportunity to convert my car to LPG and have decided I would greatly benefit from it. But no one seems to even be able to even give me a rough estimate when the rebate is returned once its paid and fitted. Kind Regards,
  
  - John Costello (26/9/06)

• Dear Web Wombat Motoring,
  
  I had inquiry into the LPG car gas conversions about the subsidies: does the subsidy cover family cars or only the one? I.E. husband's and wife's car. I am hoping that I will get a reply, as I am anxious to find out. Regards,
  
  - Whitemagic (7/9/06)
  
  Editor's Note: G'day Whitemagic. The $2,000 LPG rebate is a "one car per person" scheme according to the government's spokespeople, so yes, both your wife's and your car will be eligible for the rebate if you apply separately. If you need more info on the LPG grants, try calling this hotline: 13 28 46.

• In relation to the LPG article in the Motoring section:
  
  The LPG rebate offered by the federal government is a red herring. They are offering the subsidy now, but what will happen in 2011 when the fuel excise is applied to LPG as well, all these LPG vehicles on the road will assist in filling the government coffers. Is this rebate scheme merely an investment in future government revenue?
  
  Where is the research funding for the development of Bio-diesel?
  
  Diesel cars are not the noisy, smelly creatures they used to be, with European manufactures like Mercedes-Benz manufacturing impressive performance cars that run on diesel. Diesel is also cheaper and more environmentally friendly to produce with a less complex refinery process, not to mention the greater distances that can be travelled on one tank of diesel as compared to ULP. As far as I am aware diesel engines can run on bio-diesel blends with no or minimal conversion.
  
  What could be better than driving around in a car that smells like your local fish and chip shop?
  
  - B. Beggs (16/8/06)
  
  Editor's Note: You make a good point about the LPG excise arriving in 2011 Mr Beggs, and one that drivers may find troubling. The second point you make about diesel and bio-diesel cars is also a valid one, as diesel cars are becoming increasingly popular in Australia, with some models just as efficient as the small sized Toyota and Honda hybrid models on the market. The next few years are going to be very interesting indeed.
  
  More: From the month of July in 2011, an excise on LPG will begin. Users will begin paying an extra 2.5 cents a litre, which will be added annually for five years, totalling a rise of 12.5 cents more per litre after this time.