Category Archives: LPG

Liquefied petroleum gas (LPG) is the most commonly used alternative fuel for vehicles, consisting mainly of a mixture of propane and butane.

LPG – would you convert?

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This blog is the final in our series on fuels. We aimed to clear up the confusion about which fuels are the best to use by looking at each one in detail – premium unleaded, E10 and E85, Diesel and finally, LPG.

LPG fuel pump

Have you converted your car to LPG?

LPG

There has been much discussion in the media recently in regard to excise (tax) on LPG, which was promised by the previous Federal Government and will be introduced at 2.5 cents per litre from December this year, increasing at 2.5 c/L each year until it reaches 12.5 c/L in 2015.  While this makes converting to LPG or buying a new LPG car less attractive, how much impact will it really have?

If we assume you travel 20,000 kilometres per year in a large vehicle (these are the ones most often converted) that has a petrol consumption of 15 litres per 100 km, you will use 20,000 x 15/100 = 3000 litres of petrol.  If we assume petrol is $1.40/L the petrol cost will be $4,200.

Fuel consumption when using LPG in dual-fuel (or bi-fuel) is around 30% higher when using LPG, so we can expect around 19.5 L/100 km, meaning a year’s usage will be around 3,900 litres of LPG.  At 65 c/L for LPG, this would cost $2,535, a saving of $1,665.

A conversion for a modern vehicle costs $4,000-4,500 so if no excise was to be added, the payback period would be 2.5 to 2.7 years.  After this you have paid back the conversion cost and are saving the difference between the petrol and LPG price every time you fill up.

With excise increasing by 2.5 c/L per year and ending up at 12.5 cents per litre, this would increase your yearly LPG cost by around $100 each year, to $3,023 in 2015, saving about $1,200 compared with petrol.  This gives a payback period of around 3.5 years so you would want to be confident you would be keeping the vehicle for some time.

Of course, all these calculations are based on current fuel prices.  If they change significantly, you would have to recalculate the amounts and payback periods.

There are also grants available for people wanting to convert their vehicle. See the AusIndustry LPG Vehicle Scheme for more information.

Have you converted your car to LPG and have you found it a cost-effective exercise?  

Fuels – which should you use?

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petrol pump

Which premium unleaded fuel do you find the most efficient and cost effective?

Motorists can be forgiven for being confused about the fuels available and what their car needs.  There are five types of petrol now available (standard unleaded, 95 premium, 98 ultra premium, E10 and E85) as well as Diesel and LPG.

This blog is the first in our series on fuels to help clear up the confusion about which fuels are the best to use. We begin with premium unleaded.

Premium Fuels – is there a benefit?

Petrol vehicles are designed for a specific octane fuel and normally do not benefit from using higher octane fuel.

If the manual says you can use more than one type of petrol or blend, you may get the advantage of reduced fuel consumption (but only if your vehicle’s engine automatically adjusts its parameters to take advantage of higher octane).  Conversely, you may be able to save money by using a lower octane fuel, if the manufacturer states the vehicle will run normally on it.

As a rule of thumb:

  • 95 premium can give around 4% lower fuel consumption than 91, assuming the engine computer adjusts to take advantage of the octane difference.
  • 98 might give 3% reduction over 95, again assuming the computer adjusts the engine parameters.

The overriding recommendation is to consult the owner’s manual for your vehicle and use fuel of the octane listed.  Some motorists report lower fuel consumption using higher octane fuel.  If you wish to check this for yourself, be sure to record your fuel consumption for at least 10 tanks before you make the change, so you have a good baseline.  Try and check your baseline under normal conditions – if you have an unusual country trip in the middle of your test period, for instance, it will result in atypical figures.  Conversely, if your driving is normally on highways, a week of city driving will bias your figures.  Then change to the higher octane fuel and do a check for the next 10 tank fills and compare the figures.  If the savings from any reduced fuel consumption are outweighed by the extra cost of the premium fuel, it is obviously not economically sensible to use the higher octane.

In our next blog, we’ll look at ethanol in petrol (E85 and E10).

Which premium unleaded fuel do you find the most efficient and cost effective?

What have you done since petrol prices dropped?

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Last year, just as the price of petrol was beginning to drop from highs of over $1.70 per litre, we asked how you were dealing with high petrol prices. But now, despite predictions the drop was temporary and it would only continue to rise, the price has fallen, and significantly.

In the past we’ve published blogs about ethanol in petrol, discussed using premium unleaded, fuel alternatives, the benefits of car pooling and the price of diesel, looked at Hybrid technology and asked what you thought about making Sydney’s CBD car free. The Howard Government initiated an LPG grant of $2000 for those who wished to convert their cars from petrol to gas or $1000 to put towards a brand new LPG-powered vehicle, and we asked if you took up the offer. 

All were prompted by the debate surrounding the high price of petrol.

During the period of extreme petrol prices, the Rudd Government initiated a Fuel Watch scheme to ensure road users were not being ripped off by petrol companies and service station owners.

The number of people using public transport rose to its highest rate in almost 10 years and 2008 saw motorcycles sell in record numbers, increasing by 3.2 per cent on the record set in 2007.

Then, at the end of last year, we saw petrol at its lowest price in almost a decade, falling below $1.00. On the day of writing, the lowest price of the day was 108.9 cents per litre.

So what did you do when prices were high and what have you done since they dropped?

How are you dealing with high petrol prices?

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After months of watching it go up, the price of petrol has finally fallen.

But how long will it last? By all accounts the price of petrol will go back up and keep rising, as demand outweighs supply and oil reserves grow smaller.

Months of very high prices have given motorists more than a taste of what’s to come and a lot of people are acting, some by choice and some by necessity. We want to know what you’re doing.

The number of commuters using public transport has reportedly risen to its highest level since 1999. Have you found public transport to be a cheaper option?

Are you trying to be more frugal with your petrol or have you altered your driving technique so you use less?

Have you been getting your car serviced regularly, checking your tyre pressure weekly, going easy on the air-conditioner and carrying as little weight as possible?

Maybe you’ve signed up for a new credit card that offers discounts at certain petrol stations.

Perhaps the cost of petrol has prompted you to sell the V8 for a more economical four cylinder car.

Have you decided a vehicle that runs on alternative fuel is the answer and bought a hybrid, converted to LPG or bought a new turbo diesel?

Or are you going about your business as normal and waiting to see what happens?

What are you doing to cope with high petrol prices?

Hybrid vehicle update

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In mid-2006 we looked at hybrid technology, its place in the market and where it was headed. Two years on, the theory behind hybrid vehicles hasn’t changed, but has the technology? We decided it was time for an update.

The escalating price of oil has meant car manufacturers have been forced to try and make cars more fuel efficient. Of course, while this doesn’t mean their entire focus has been on fuel efficiency and its alternatives – evidenced by the launch of the Hummer H3 in Australia, and new, thirsty Commodore and Falcon ranges – the world has adopted a ‘green’ attitude to almost everything, motor vehicles included, and hybrids, most notably Toyota’s Prius, have been widely promoted as the way of the future. With the price of petrol only going up, they may well be!

Hybrid technology

Hybrid technology has improved in recent years – not greatly, but new ideas on refinement are in development.

The third generation Toyota Prius is on the way. It will debut at the Detroit Motor Show in 2009 and has a 1.8 litre engine (larger than the current model) delivering 100bhp but with 12 per cent improved fuel consumption.

Battery technology is on the improve with researchers in Australia having created what could be called a lead-acid battery on steroids, capable of performing as well as the nickel/metal hydride systems, found in most hybrid cars, at a much lower cost. This battery combines the traditional 150 year old lead acid battery with super capacitors – electronic devices that can quickly absorb and release large bursts of energy over millions of cycles without significant degradation. As a result the battery may last up to 4 times longer than conventional lead/acid batteries and cost 25 per cent less to produce than existing hybrid battery packs. These batteries were tested in the United Kingdom earlier this year and found to be in perfect condition after 100,000 miles on a test track.

At the moment consumers can expect to pay up to $5000 for a replacement battery pack. However with this new technology a hybrid owner will pay around $1000, depending on demand volume. This in itself makes owning a hybrid vehicle a much more appealing and long-term option.

There are also great advances being made with the lithium ion battery which is lighter, stronger and more compact than the nickel metal hydride batteries currently used.

Hybrids in Australia

The number of hybrids available locally is increasing.

• Currently available are –
   o Honda Civic
   o Toyota Prius
   o Lexus RX400H
   o Lexus GS450H
   o Lexus LS600H
• Hyundai are looking at bringing a hybrid vehicle to Australia that runs partly on battery and partly on LPG. This system is up and running in Korea, with great cost savings for the consumer. (Bear in mind that excise will be placed on LPG in 2011, rising to 12.5 cents per litre by 2015.)
• Toyota recently announced it will be manufacturing a hybrid version of the Camry in Australia with support from the Federal Government.

However, even though Toyota recently reached a million Prius sales worldwide (the first and most successful mass-produced petrol/electric hybrid), only 9,300 of those were in Australia. Relatively poor sales may be because the technology is seen as eccentric, they’re not viewed as cost-effective or long waiting lists have put off potential buyers.

Do you drive a hybrid? What do you like and/or dislike about it? Do you intend to buy one in the near future and if so what and why?