Thread: Parity between petrol and LPG prices? Truth or rumour?

In my opinion, I would think this is unlikey. The original laws govering cheap LPG prices ended years ago, and there was a heap of talk that LPG prices would skyrocket then, but they didn't. The oil companies keep LPG at about half the price of petrol, and I think it will will stay this way.

Are you confusing it with the application of excise on LPG that commences this July (announced about 8 years ago)? It starts at 2.5 cent/litre increasing by 2.5 cents each year until it reaches 12.5 cents/litre in 2015.

See http://www.smh.com.au/business/feder...0512-uy3a.html

See also the second last page of this govt. page: http://www.ausindustry.gov.au/energy...lpg%20faqs.rtf

I am no expert whatsoever but it has crossed my mind that LPG needs to be roughly half the cost of petrol not 50c cheaper, if petrol goes to $2 and LPG is $1.50 then LPG is unaffordable.

Anyone know how much we are selling bulk LPG to Japan for? I've heard something around 5 cents per litre.
Wagoo.

We sell CNG to japan different stuff but 5c sounds about right A lot of sydney buses run on it not many cars has less energy than LPG

Originally Posted by F4Phantom

I am no expert whatsoever but it has crossed my mind that LPG needs to be roughly half the cost of petrol not 50c cheaper, if petrol goes to $2 and LPG is $1.50 then LPG is unaffordable.

There is no logical reason why gas should go up when petrol does as it is a different thing altogether, the same I feel as trying to justify increasing the price of fuel when the bread or milk prices go up. I'm sure the cost of the fuel in the storage tanks doesn't need to change 4 times a week.

Funny that the cost of filling a bbq gas bottle which is pretty well the same as lpg hasn't changed in a few years.

Originally Posted by pfillery

There is no logical reason why gas should go up when petrol does as it is a different thing altogether, the same I feel as trying to justify increasing the price of fuel when the bread or milk prices go up. I'm sure the cost of the fuel in the storage tanks doesn't need to change 4 times a week.

Funny that the cost of filling a bbq gas bottle which is pretty well the same as lpg hasn't changed in a few years.

Autogas is propane plus butane and anything else the refinery feels will burn with it. So it is generally 1/2 the price of pure propane, which goes in consumer gas bottles. Gas bottle filling is mainly labour cost, and about 1/2 of the price is the bulk propane.

The primary price driver for propane is the Japanese market's winter heating and cooking, so it tends to be higher during our summer. Petrol tends to be higher priced during the northern hemisphere summer, ie our winter.

As for the rising LPG price overtaking petrol, I doubt it. Petrol costs will soon rise rapidly as the US and Asia throw off the problems from the GFC in '08

Just 2 hours ago I filled LPG at a mobil for 64.9 and standard unleaded was $1.50. I haven't seen such a price advantage for a couple of years. Will it last? Probably not.

As for the LPG excise, the LPG equipment wholesale industry is lobbying hard to defer the tax. So far they have gained 6 months stay and they aren't giving up just yet.

Lpg currently has virtually no tax(except for GST) on it because it is more enviro. friendly as in a well tuned car it produce little emissions. Petrol has around 70-80c tax + GST and the original proposal was as stated before 2.5c tax on gas per year up to a limit that was as mobile as a pollies arse between 12 and 20c.
If we converted every car in Oz to LPG/CNG we could run them for over 200 years but that would annoy several large oil countries who we buy off, so we virtually give it away for pitance to japan and china.