LPG creeps back into motorists' favour

Liquefied petroleum gas - which went through boom and bust times in the 1980s - is staging a modest comeback among high-mileage motorists who see no end to rising petrol prices.

An ever-widening price gap is boosting demand for the alternative fuel, particularly among commercial users, who enjoy a faster payback than most private motorists for LPG conversion costs ranging from $3000 to $5000.

For those willing to fork out $46,290 for a new 4-litre Ford Falcon, the only dedicated LPG vehicle available for New Zealand roads, the price premium is $1500.

"It's a no-brainer," Taxi Federation executive director Tim Reddish said yesterday of the resurgence of interest in LPG on cab ranks, aided by discount deals from both fuel and vehicle suppliers.

That was enabling taxis to recover the higher price of buying an LPG vehicle in a few short months rather than the several years it might take private motorists.

But one taxi driver, who bought a new petrol-only Ford Fairlane seven months ago, expressed frustration that he could not convert it to LPG without losing his warranty.

The only other LPG vehicle supplied new in this country is a Holden VZ Commodore, which is dual-fuelled, meaning it costs $5370 more to buy than its petrol-only equivalent.

Although between 20 per cent and 37 per cent more LPG is needed to drive the equivalent distance covered by petrol, the alternative fuel was selling in Auckland yesterday for only half as much.

An informal survey found the price of a litre of LPG ranging from 81.9c at Shell's Beach Rd service station in downtown Auckland to 85.8c at a Caltex outlet in Dominion Rd.

That compared with $1.759c for 91-octane petrol at both sites.

The LPG Association, having had fingers burned in the 1990s when petrol prices fell dramatically, is careful not to overstate expectations of a resurgence and admits that only about 10,000 motorists now use the fuel compared with some 50,000 in its heyday.

Ford figures issued yesterday show sales rose from 41 new LPG-powered Falcon sedans and wagons last year to 59 vehicles so far this year.

Although that was a 44 per cent increase in its LPG vehicle sales, the percentage of all new Falcons which are powered by that fuel rose from just 1.7 per cent to 3.3 per cent.

Association executive director Peter Gilbert said that although LPG was a high-performance fuel, with assured supply lines, motorists should be careful to calculate the economics of converting against their individual driving needs.

Despite that cautionary note, LPG installers in Auckland report waiting lists ranging from two to 10 weeks, and are having to train more mechanics.

Auto Gas Technology head Grant Miller has in recent months helped to set up six new workshops around Auckland for LPG conversions, such is his confidence in a growing market.

As well as the price advantage, LPG vehicles emit about 15 per cent less greenhouse gas than petrol guzzlers.