Does the LPG Repair and Service Automotive Industry have a Future?
- In 2008, 96,401 private vehicles in Australia were converted to run on LPG. In 2011, there were 27,976 conversions;
- In 2008, 13,378 new LPG vehicles were sold in Australia. Just 244 were sold in 2011;
- The Federal Government’s LPG installation incentive ends 2014;
- On 1 December 2011, excise on LPG was introduced. It will rise to 12.5 cents per litre by mid-2015.
The LPG repair and service industry is at tipping point. Its future hangs in the balance.
Despite vast reserves of Liquid Petroleum Gas (LPG) in Australia, consumer demand for LPG vehicles is low and interest in LPG as a viable alternative fuel is diminishing. The LPG automotive service and repair industry will consider its future today at the LPG Conference, hosted by VACC. Among VACC’s 5,000 members are business owners of repair and service workshops, specialising in alternative-fuel vehicles.
“LPG has a lot going for it as an alternative fuel, and yet, governments, motorists and business owners are not as interested in it as they could be,” VACC Executive Director, David Purchase, said.
“Motorists have shunned LPG and it seems the only demand for it is from the taxi industry. Unless a way of promoting LPG can be found, there are not going to be enough LPG vehicles for repair and service automotive businesses.
“LPG is environmentally friendly and yet governments are not promoting it as they should. It has not helped that motorists have received a double whammy with the LPG conversion rebate being phased out and excise on LPG introduced. We urge the Federal Government to review these factors and to reconsider its assistance packages for the promotion of LPG as an alternative fuel for vehicles,” Mr Purchase said.