WHAT IS LPG?

LPG is a mixture of light hydrocarbons that are gases at normal temperatures and pressures, but liquefy at moderate pressures or reduced temperatures.

The main component gases of autogas are propane (C3H8) and butane (C4H10) . Autogas is colourless, odourless and heavier than air. A sulphur based chemical (ethyl mercaptan) is added to give it a smell, so that even a very small leak can be easily detected. LPG Autogas burns readily in air and has an energy content similar to petrol, which makes it an excellent fuel for automotive use.

LPG occurs naturally in crude oil and natural gas production fields and is also produced in the oil refining process. Australia has five sources of naturally occuring LPG sources - Bass Strait (1,050) kilotonnes (kt), Cooper Basin in Central Australia (410 kt), North West Shelf (810 kt) Kwinana in Western Australia (330 kt) and Surat Basin in Queensland.

Refinery production is from seven refineries, Bulwer Island (BP) and Lytton (Caltex) in Queensland, Clyde (Shell) and Kurnell (Caltex) in New South Wales, Altona (Exxon Mobil) and Geelong (Shell) in Melbourne and Kwinana (BP) in Western Australia.

Australia produces currently about 3,300 kt of LPG annually. Of these volumes, 80% is naturally occurring (i.e. extracted from oil and gas production) and 20% is extracted from crude oil in the to grow to 5,024 kt by 2020.

LPG is readily available for sale in over 3,200 service stations around Australia and the number is growing.

Autogas is typically at least 50 per cent cheaper than other automotive fuels. LPG Autogas prices move in a similar manner to petrol prices nature of the industry.

LPG typically has around 20 per cent less ozone forming potential (a measure of the tendency to generate photochemical-cal smog) and between 10 and 15 per cent lower greenhouse gas emissions.  LPG Autogas vehicles operate even more cleanly when the engine is cold.

LPG autogas is also much cleaner than diesel.  The dirty black smoke that we see coming from diesel vehicles is particulates from the engine with an LPG Autogas-powered equivalent, over 90 per-cent of this particulate matter would be eliminated.

Currently, fuel excise tax does not apply to LPG Autogas, whereas petrol is taxed at 38.14 cpl. Starting in 2011, fuel excise tax will be added to LPG Autogas at a rate of 2.5 cpl. This will increase by 2.5 cpl for five years, until the fuel excise on LPG Autogas reaches 12.5 cpl in 2015. However, it is anticipated that motorists using LPG Autogas in 2015 will still be paying significantly less than those motorists who fill up with petrol. Back to Top