Switch to LPG to cost in long run

THE government LPG subsidy will waste money on old, inefficient technology that relies on the fuel staying cheap to be economical, experts say.
Most liquid petroleum gas-based systems are little more than "a $3500 barbecue gas bottle" they say, and drivers who convert their cars risk invalid warranties and rising LPG prices when extra taxes apply in five years.
Australian Gas Vehicle Owners Association convenor John Bell said the government subsidy of up to $2000 to convert vehicles from petrol to LPG failed to distinguish between dated "fumigation" systems that were "basically 1940s technology" and more modern "injection" technology.
"These old systems squander the potential of LPG - basically they're inefficient and only make sense so long as LPG is much cheaper than petrol," Mr Bell said. "A lot of LPG goes straight out the exhaust pipe."
Newer electronic systems minimised fuel consumption and pollution, he said, but cost up to twice as much as a simple conversion.
University of Melbourne professor of mechanical engineering Harry Watson said the subsidy favoured old technology at theexpense of promising new systems, such as liquid phase injection.
"Liquid phase has advantages which ought to be regarded," he said. "There ought to be some carrot for people to get into the marketplace with these more efficient systems."
Engines with liquid phase injection used much less fuel than traditional LPG systems and had dramatically improved pollution levels, he said.
"I think credit should be given for high-efficiency systems to encourage people to move in that direction," he said.
Australian Automobile Association executive director Lauchlan McIntosh said most current LPG conversions were little more than "$3500 for a barbecue gas bottle in the boot".
"I would like to see some innovation in alternative storage for LPG," Mr McIntosh said. "Why does it cost up to $3500 just to put an LPG cylinder in the back of a car? That's about a quarter the price of a Hyundai."
Mechanics conducting LPG conversions have been warned not to inflate their prices in response to the Government's subsidy or they might face being publicly shamed.
NRMA motoring and services president Alan Evans said the organisation would be keeping a close eye on prices and would "out ... anyone who jacks their price up" in response to the subsidy.
"If they try to exploit this, they will feel the wrath of the motoring organisation," he said.
Car-makers have also distanced themselves from aftermarket conversions, raising safety doubts.
"If you convert a vehicle under three years old, you would void your warranty for any damage caused by the conversion," Ford spokesman Ed Finn said.
This week, LPG was selling for 50.9c in Sydney, compared with 132.9c for the cheapest unleaded petrol.
The gap will close in 2011 when the federal Government introduces an excise on LPG, which will rise in annual increments of 2.5c a litre until 2015.
Petrol attracts an excise of 38.1c a litre