Liquefied Petroleum Gas: Does The Acronym LPG Still Hold Currency?

LPG is struggling in the Australian car market at the moment, when compared with diesel. More diesel driven cars are being made internationally for the Australian market and being sold in this country than those fired by LPG. Of course, the extremely low price of petrol and its derivatives worldwide is fuelling this situation. Despite diesel having a hiccup via Volkswagen and the pollution indicator scandal, diesel cars are becoming more popular than ever before. LPG as an alternative fuel is more on the nose than it has been for some decades. LPG has its fair share of detractors in a number of industries.

One of the main issues with LPG for some car owners is the lack of boot space for a full size spare tyre. Taxi drivers are still probably the main users of LPG vehicles in Australia at the moment. The numbers tell the story, however, with a fall in new LPG fuelled cars in Australia from 7954 sold in 2010 and only 3082 sold last year in 2015. Ford is currently not selling new LPG fuelled cars, until the Eco LPI Falcon hits the market. Holden is about to introduce a new dedicated LPG Commodore.

Liquefied Petroleum Gas: Does The Acronym LPG Still Hold Currency?

In the light commercial vehicle (LCV) sector all the vehicles are diesel powered, except for Falcon and Commodore utes. Diesel passenger car sales have gone from 1.7% to 15% in just five years; that is a huge leap in the market. Diesel holds around 27.1% of the market for vehicles up to 3.5 tonnes, which includes SUVs and LCVs. Petrol fuels some 72.5% of that category, and LPG just 0.3%. Diesel has definitely left LPG in its wake. ACM Group vehicles, as an example of a corporate entities car/fuel use are a mix of petrol, diesel and LPG; with the vast majority being petrol fuelled vehicles.

Australia continues to see large amounts of LPG to China. The American propane market sees continued steady growth for this energy. Obviously, the global decline in oil prices has slowed the take-up of LPG in internal combustion engine conversions. A rebound in the number of residential new houses being constructed is predicted to see more LPG heating used in this sector. Domestic propane production levels will continue to increase, which will keep its price competitive with oil in the US market.