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LPG THE ECONOMICS (Updated
1 May 2006)
According to the LPG Association, a vehicle powered by LPG
will consume approximately 27% more fuel than the same vehicle
powered by conventional fuel, i.e. petrol or diesel. However,
one of the local manufacturers puts the increase in fuel
consumption closer to 38%. That same manufacturer also
reported a loss in performance, (7.75% KW Power and 6.5%
NM Torque). In practice the performance loss means
to reach 100 Km/h will take an additional ½ second
(so small that most people would not notice any practical
difference).
According to the LPG Association
To work out the cost effectiveness of an LPG conversion
the following assumptions have to be answered:
· The
annual distance to be traveled (Km)
· The
vehicles fuel consumption (L/100
Km)
· The
average petrol cost ($)
· The
average LPG cost ($)
To estimate the petrol consumption cost the following
calculation should be used:
· Km/100
x L/100 x $ (Total distance traveled in Km x Liters of
petrol/per one hundred Km, x the cost of Petrol per Litre
= total annual cost.
A similar calculation applies for LPG, except
that fuel consumption will increase by (27%-38%) so the fuel
consumption figure must be increased by a factor of 1.27-1.38
and the LPG is substituted for the petrol cost.
· Km/100
x L/100 x 1.27-1.38 x $
The above calculation will give you the
annual fuel bill for both, a petrol and an LPG powered vehicle. The
difference will be the saving you could reasonably expect
to achieve should you decide to convert your vehicle. However,
now it is time to consider the cost.
The cost of an LPG conversion varies
between makes and even models, so best check it out with
your local conversion center. Some LPG powered
vehicles are nowadays available ex factory (Ford BF Falcon
for example). A typical conversion can cost between
$2000 and $3000 approximately and depending on the distance
traveled it may take some years to recover your cost. As
a guide it can be said that, the higher the annual distance
you travel, the more likely it is that it will make financial
sense to convert to LPG. Keep in mind that few
individuals or companies retain vehicles for over 5 years.
Update: At this point in time,
in May of 2006 LPG receives favorable Tax treatment, this
will cease in 2011 when the Government will introduce a LPG
tax that will move the pricing closer to the Petrol pricing.
For further information contact www.carsolutions.com.au or
write to info@carsolutions.com.au
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