LPG prices

Federal Government deregulated the wholesale price of LPG in 1991, and since then LPG prices have been influenced by international prices and the value of the Australian dollar. The international price used in the market is called the Saudi Aramco Contract Price (Saudi CP) and is expressed in US dollars per metric tonne. It is set on the propane and butane commodity prices, and issued on the first business day of the month and remains fixed for the remainder of that month. The local wholesale price is based on the Saudi CP, but adds other factors in like the cost of freight and GST. On top of that the Federal Government has been increasing the excise on LPG, which has edged the price closer to petrol. You have to also think that the companies supplying LPG are setting their prices at the level they think the market will stand. It is likely that the price of LPG will get closer to petrol, but it's impossible to say how much closer and how fast it will move. The only thing you can do is to do your sums on the cost of buying and running cars on petrol and LPG and work out the kilometres you would need to travel to recoup the extra costs involved with LPG before you start to realise any savings.