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Switching to gas can halve your fuel costs


It is clear, as the economy tightens and petrol and diesel prices remain volatile, that owners are looking at squeezing more of their precious dollar out of a tank of fuel.

LPG, or autogas as it is known, is becoming more popular as it can save car owners up to 50 per cent off their fuel bills. You don't need a calculator to work out the benefits. Depending on where you live, unleaded petrol costs around $1.50 a litre versus 70c a litre for LPG.

And the resulting savings have convinced more than 500,000 Australian motorists to switch to LPG, according to the chief executive of LPG Australia, Steve Woodward.

“There is an amazing amount of interest in LPG,” he says. “And it's growing each month. Last year there were 95,000 conversions, 75,000 in 2006 and 35,000 in 2005.”

The LPG vehicle-conversion scheme has also just been extended to 2015, which provides some long-term reassurance for prospective customers. Woodward says it wasn't so long ago that many consumers thought of LPG cars as “bombs on wheels”.

“That's long gone,” Woodward says. “The demonstrated safety of an LPG vehicle is now well established.”

But he says that despite wider acceptance, there are still misconceptions regarding both the fuel and the conversion process.

“The biggest issue that we need to address is people asking, `Can my vehicle be converted',” he says. “The short answer to that question is yes. Everything's being converted, from Rolls-Royces to Bentleys down to Fiat 500s.”

And like all consumer items, it pays to shop around. Cost is another factor, and the biggest thing that determines the conversion cost is a vehicle's age.

“An older vehicle manufactured before 2004 should cost about $2500 to $3200, depending on the car,” he says. “More recent cars with Euro III and Euro IV emission technology are a bit more — $3500 to $4500, and some could be a bit more than that.”

The newer systems also have improved liquid injection systems that deliver more power, improved economy and driveability. However, not all companies use the latest technology.

So, again, it pays to shop around to find what's best both for your hip pocket and your engine.

Smith says that most problems with LPG conversions relate to poorly installed systems.

“It pays for people to find out as much detail as they possibly can,” Smith says.

One of the most respected suppliers in the country is the Australian LPG Warehouse, which has more than 400 installers nationally. The LPG Warehouse recommends three different LPG systems for vehicles, depending on their age.

The first and cheapest is a traditional venturi system, a budget-priced unit suitable for pre-2003 cars. Next is a sequential vapour injection system for vehicles newer than 2003, while the newest premium JTG liquid-injection system can be used for current year model vehicles and has better power than petrol injection systems.

Woodward says the payback period for an older and newer car is different but one thing is certain: owners will still save in the long run.

“It depends on kilometres driven, too,” he says. “If you're doing 20,000km, the payback period is about six months.”

Another factor in the rush to LPG is the fact it is excise free. And LPG cars also command higher prices on the used market.

“An LPG car will get $1500 to $2000 more than an identical car that is the same make, model and same condition and kilometres,” Woodward says. “This makes it a big attraction for both small and large fleet operators.”

Woodward is also of the view that growing consumer knowledge will increase the demand for factory-fitted LPG cars.

“Until [now] the only manufacturer that's done that successfully is Ford, and they're underpinned by the taxi fleet,” he says.

Ford has a dedicated E-Gas Falcon sedan and ute, while Holden now has a dual-fuel LPG Commodore. A dedicated E-Gas Falcon XT starts from $37,890 and, with 10 LPG models, the G6E tops the batting at $48,390.

Holden is using LPG as part of its alternative fuel push on its cars. There's dual-fuel LPG in the Omega and Berlina sedans and the Omega ute. The LPG Commodore Omega sedan will set you back $33,990 and the Berlina $42,690.

Over 12 months, both the Commodore and Falcon deliver running costs that rival the small four-cylinder Toyota Corolla.

And just like Ford, which now sells 25 per cent of its Falcons as E-Gas cars, Holden is expecting a significant sales boost.

The bottom line on the Holden move was a $1500 price cut on its dual-fuel LPG cars from September 1, helping drive renewed interest in the Commodore. In fact LPG may well prove the large-car segment's saviour.

SNAPSHOT

Subsidies available

$2000 toward the cost of an LPG conversion of a new or used motor vehicle for non-business use and $1000 toward a factory-fitted LPG vehicle for non-business use.

Can I convert my car?

Almost all unleaded petrol-fuelled vehicles can (subject to luggage space limitations) be converted to LPG. Systems range in price from about $2500 to $4500 installed.

What are the savings?

Working on a price of 65c a litre for autogas and $1.40 a litre for unleaded petrol, a Holden Commodore driver travelling 28,000km a year on autogas will save $2020 ($38 a week), according to LPG Australia. A Toyota HiAce van travelling 40,000km a year on autogas, meanwhile, will save its owner $2886 a year, or $55 a week.

Go to lpgautogas.com.au for more information and a handy calculator to work out your cost advantages.

OTHER CHOICES

Diesel

Growing in popularity every month. Car buyers are discovering ultra-frugal economy, strong torque and low emissions. Common rail diesel engines have a more efficient operating cycle than spark-ignition (petrol) engines. This results in less fuel energy being consumed to produce the same amount of propulsion energy. Many new diesel cars are fitted with particulate filters and other technologies that make them environmentally cleaner.

 

Ethanol

It provides greenhouse gas reductions beyond what's available from fossil fuel technologies, but costs more to produce. It is mostly sold as a 10 per cent fraction (E10) of petrol locally but some E85 — 85 per cent ethanol — vehicles are available. At this dilution, the greenhouse gas benefits are slight and fuel economy gains are questionable. Cars that run on higher concentrations must have special fuel lines and other plumbing.

Electric

All-electric cars may end up being our future commuter vehicles. Zero noise and no exhaust emissions. But the batteries, even the latest lithium-ion ones, are heavy and take up space. Questionable environmental impact plugging into mains power to recharge.

Hybrids

These are growing in popularity but some diesel engines are actually more fuel efficient than hybrids, which must carry around a heavy battery pack. Plug-in hybrids and range-extender hybrids like the Chevrolet Volt are expected to make good city cars.

Hydrogen

Technology is in its infancy but zero emissions make hydrogen attractive. However, it is an expensive long-term proposition because of storage and infrastructure requirements. About 80 per cent of the world's hydrogen comes from natural gas or oil too. This means CO2 emissions are produced but offset by the fact CO2 emissions are reduced through the use of hydrogen to power a car. Hydrogen storage in vehicles needs further work. A stainless-steel tank in a car containing the hydrogen also needs to be super-insulated to keep the contents at -250C.

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