Australian Fuel News - Senators Turn Blind Eye To FuelWatch

[JoeT]

Senators Turn Blind Eye To FuelWatch

Robert Wilson
13 August 2008
www.wheelsmag.com.au

The Federal Government's scheme to regulate fuel prices is losing support, both from the Public and the Senate.

The Federal Government's national FuelWatch scheme seems doomed after losing the support two key independent senators, whose favourable nod was needed to get it passed in the upper house.

Family First senator Steve Fielding has joined independent Nick Xenophon in saying he would not support the scheme as it stands.

The Government needs the support of the five Green senators and the two independents to get the legislation passed.

The Green senators are still undecided, and will wait until the Senate inquiry into FuelWatch is finished.

Senator Xenophon said FuelWatch in Wstern Australia had wiped out independent fuel retailers. He also quoted reports from four government departments that said the scheme could lead to increased fuel prices.

"I can't support the Government's scheme, it just doesn't make sense," he told ABC Radio.

Senator Fielding agreed.

“Family First has serious concerns and we are still wanting to understand how it won't push average petrol prices up, and we also want to know how FuelWatch won't squeeze out independents," he told ABC radio.

"And until we are satisfied with those two questions, Family First can't support FuelWatch either.”

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Liquid Gas Injection Breakthrough

John Mellor
24 June 2008
www.goauto.com.au

LPG Liquid Injection tech to rival petrol engine consumption in Oz within a month.

The Australian car industry and Kevin Rudd’s struggling ‘working families’ could soon benefit from a completely new form of LPG technology that improves the fuel economy of LPG cars and significantly improves emissions.

Known as LPG Liquid Injection, the technology is said to produce fuel economy for LPG cars that is close to the petrol equivalent for the same car.

The exhaust emissions are also said to be significantly better than petrol or diesel vehicles because using liquid injection creates a much more complete fuel burn than using LPG vapour.

The imported liquid injection system, called JTG (Just Think Green), is expected to go on sale at LPG conversion workshops in late July.

Conversions will cost about $300 to $400 more than current conversions. The early focus will be in Falcons and Commodores before being rolled out to other makes and models.

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Diesel Doubts Continue

Philip Lord & Marton Pettendy
4 June 2008
www.goauto.com.au

The GoAuto investigation last week into the growing disparity in price between petrol and diesel fuel, and how it affects the time taken to repay the cost of diesel passenger cars versus petrol cars, attracted a strong response from readers in favour of diesel vehicles.

While the story deliberately dealt only with the impact of increased diesel prices and the dramatic direct impact it has on the time it takes to repay the initial outlay, many readers have argued that we did not include important factors such as the resale value or servicing costs of diesel vehicles – and that there are some diesels that do not cost any more than an equivalent petrol version to buy.

Diesel cars sold in Australia that are also offered as a petrol generally cost extra. As a rule, the diesel passenger car price premium is between $1000 and $4000. Only six diesel models carry the same price as the petrol version, with two actually being cheaper (the Volkswagen Passat and Eos).

Our examples last week used a generous annual distance of 20,000km, but according to the latest Australian Bureau of Statistics publication 'Survey of Motor Vehicle Use', the average annual mileage for the Australian vehicle fleet is 14,600km.

This average includes the articulated truck average annual distance of 88,300km, meaning that the private Australian car travels even less than 14,600km.

Using the 14,600km figure, the time to pay off the estimated diesel premium on the sticker price will take much longer than our estimates last week – which in the 2010 Falcon’s case is 23 years at current fuel prices.

If diesel rises to $1.94 and petrol stays the same price, in our example using a diesel Falcon the diesel advantage would be nullified and the initial cost penalty would not be returned by better fuel efficiency.

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LPG Advantage Grows

Marton Pettendy
27 May 2008
www.goauto.com.au

LPG offers ‘immense’ savings over diesel and petrol per annum.

The price of diesel may be soaring ahead of both petrol and LPG, but based on an average price of 65 CPL, LPG-powered versions of both the current FG Falcon and VE Commodore still take just one and three years respectively to negate their higher purchase prices – before the federal government’s LPG vehicle subsidy is factored in.

The latter provides a $2000 rebate for private motorists who convert a petrolpowered vehicle to run on LPG Autogas and $1000 for a new LPG vehicle. More than 125,000 private motorists have converted their vehicles or bought new LPG-powered vehicles with the help of the government grants since the scheme was introduced in August 2006.

LPG Australia last week said the savings offered by LPG vehicles have never been greater, with Autogas retail prices remaining at least 90 cents lower than last week’s new record petrol price of $1.60 per litre. Last month the national average ULP price was $142.9 per litre, compared to 66.3 cents for Autogas.

“While LPG is not immune from price fluctuations caused by world oil markets,
Autogas typically sells for less than half the price per litre of ULP petrol. Over the course of a calendar year it clearly offers an immense savings advantage,” said LPG Australia industry development manager Phil Westlake.

“If you are spending $80 per week on petrol now, you’ll be spending $40 or less on Autogas. That’s $40 per week that stays in your back pocket.

“Even without a $2000 grant, a motorist who converts a six-cylinder engine to run on Autogas will recover their conversion investment in under two years – assuming they travel 25,000km per year and their
conversion cost $3000.

Click here to continue article



Diesel Dilemma

Marton Pettendy
27 May 2008
www.goauto.com.au

Diesel prices soar relative to petrol, just as cleaner-burning Euro oilers gain pace.

The increasing disparity between petrol and diesel pump prices due to soaring demand for diesel fuel in Asia has dramatically increased the length of time it takes to recoup the extra cost of purchasing diesel cars, a GoAuto investigation has revealed.

The retail price of diesel in Sydney last week reached $1.80 per litre – up to 35 cents more than unleaded petrol at the same sites – and experts predict the recent earthquake in China could further increase the demand for diesel there and therefore its retail price here.

Last year, sales of petrol passenger cars to business purchasers rose by more than 88 per cent and sales to private buyers increased by almost 63 per cent. Sales of diesel passenger cars to private buyers have risen more than 50 per cent so far this year while private petrol car sales have dropped by five per cent.

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LPG Subsidy Reprieve Welcomed

James Stanford
19 May 2008
www.goauto.com.au

The LPG industry and the VACC have welcomed a stay of execution for the federal government’s LPG subsidy scheme.

There had been speculation in the lead-up to the budget that the LPG subsidy would be axed.

So far, the scheme has seen $250 million of assistance given to motorists converting their engines to LPG or purchasing new LPG models since it was introduced in August 2006.

It was reported in the lead-up to the federal budget that the Expenditure Review Committee had decided to discontinue the program ahead of its proposed 2014 end date.

Instead, the government announced it will provide an additional $19.1 million in 2007/08 for the LPG scheme in response to rising demand.

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Car-Makers Fail To Back LPG Subsidy

James Stanford
5 May 2008
www.goauto.com.au

Ford Australia and GM Holden are not worried that the existing LPG subsidy could be scrapped in the upcoming budget.

While the Federal Liberal party, VACC and LPG Australia have all voiced their opposition to the potential axing of the LPG assistance scheme for private customers, Ford and Holden do not share their concerns.

As of April, 120,231 people had qualified for the subsidy that was introduced in August 2006, but fewer than 1500 of those bought new cars that could run on LPG.

More than $239 million has been handed out under the scheme so far. Grants are available for private customers who buy a new car running LPG or have a used car converted to run on gas.

Under the scheme, private customers get a $2000 subsidy for having their used car converted to LPG and receive $1000 for buying a new vehicle that runs on LPG.

In an interesting twist, the new dual-fuel VE Commodore LPG attracts a $2000 subsidy because the conversion work is done by HSV in Clayton after the car is manufactured even though it is still technically a new car.

Single-fuel E-Gas Falcon models only qualify for a $1000 subsidy because the LPG work is done in-house at the time of manufacture.

This detail has not had much of an effect on sales, with Holden previously admitting the LPG Commodore, which was introduced with the VE Commodore in 2006, was not selling as well as expected.

Holden said that LPG cars accounted for around 5 per cent of Commodore sales last year, and only a very small percentage of those were private sales.

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LPG Better Than Petrol, Ethanol & Biofuels, Says Former Holden Engineer
New Car Manufacturing Plan For Australia On The Way

[SUPERBADD75]

JoeT, is there a price advantage at the pump for LPG, and is there any performance difference between comparable LPG and gasoline/diesel vehicles?

[jbernie]

Interesting, I would have thought this would have done better, esp. with the new Holden's getting $2k on a new car (wierd!).

I wonder how much of it is a potential stigma relating to LPG being fuel for taxis?

[mmciau]

Originally Posted by jbernie

Interesting, I would have thought this would have done better, esp. with the new Holden's getting $2k on a new car (wierd!).

I wonder how much of it is a potential stigma relating to LPG being fuel for taxis?

There was a serious loss of LPG sales momentum when Holden changed engines to the new Alloytec. There was also an introduction of new ADR associated with LPG.

Thus there was a gap of 18 months or so in the then VZ LPG availability.

I think, based on Dr Terry's earlier summary that there is a minimal loss of performance of LPG and Petrol on the latest installations so if you look at fuel costs $0.67/litre LPG to $1.43/litre petrol is 47%.

For diesel it is 39% of diesel.

LPG is attractive! There is a $1500-$2000 premium at government auto auctions here in SA for the dual fuel cars

Mike

[isszy]

The rebate makes a huge difference. I have a VY Berlina wagon and a VY Berlina sedan. The wagon is on a novated lease and so did not qualify for the rebate - genuine Holden LPG conversion cost me $3500. The sedan is owned outright, and cost $500 after the rebate to convert.

Superbadd, LPG in Victoria is about 60cents per litre, unleaded is around $1.45. LPG has very little performance degradation as long as it is tuned right, but uses around 25% more fuel. This still means I pay less than half of what I would pay for unleaded.

Both my cars are dual fuel, so if I wanted to (although I wouldn't) I could fill both tanks and have a range of over 1200kms. It would cost around $110 to fill both ($30 LPG - $80 unleaded.

I run them on unleaded for a bit each time I empty the LPG tank, just to lubricate everything.

[crYnOid]

One very interesting tech that will be available in australia soon is liquid LPG injection. It's main advantage is:

The fuel usage using JTG is within 5% of petrol unlike vapour injection which is only within 20%. This makes it a very viable option. As with all technology it is more expensive than its predecessor. However it will only be from $300 to $400 more per kit depending on the vehicle. This is well made up for in the 15% benefit over vapour injection economy.

So a 5% increase in fuel consumption over unleaded petrol but when the fuel cost approx. half of unleaded petrol it would pay for itself very quickly!

[Baz]

Question- Australia sells Japan LPG for 2 cents a litre, yet at the petrol station they want 60+ cents. WTF is that ****!

[isszy]

Our price is based on the Saudi Aramco price which is set once a month. Supposedly, this is the price they could get on the open market, so that is what they charge us.

The prices are listed here:
http://www.lpgaustralia.com.au/displ...barticlenbr=11

[JoeT]

LPG Subsidy Reprieve Welcomed

James Stanford
19 May 2008
www.goauto.com.au

The LPG industry and the VACC have welcomed a stay of execution for the federal government’s LPG subsidy scheme.

There had been speculation in the lead-up to the budget that the LPG subsidy would be axed.

So far, the scheme has seen $250 million of assistance given to motorists converting their engines to LPG or purchasing new LPG models since it was introduced in August 2006.

It was reported in the lead-up to the federal budget that the Expenditure Review Committee had decided to discontinue the program ahead of its proposed 2014 end date.

Instead, the government announced it will provide an additional $19.1 million in 2007/08 for the LPG scheme in response to rising demand.

Click here to continue article

[BBDOS CV8]

Best things about LPG apart from low cost - no NoX, no particulates, no lead, no ethers or methyl benzines or aniline or other carcinogenic octane boosters. Only water vapour and some hydrocarbon comes out the tailpipe.

If the car is tuned to run via port injection, you can get good performance because it is about 115 octane. It is slow burning though.

[Slick_Holden]

I don't think they care about LPG really, It seem they have other plans that appeal to them now.

Actually it seems the public don't care a great deal about LPG like they seem to once.


My sisters BF runs a S1 VN on LPG, Cars done about 380,000km.

I'm still driving my old car mums car S1 VP on Petrol done about 322,000km.

He is always at the pump no doubt it uses more how much not sure,
But on the other hand I'm still getting great econemy of around 450km local driving to the full tank.
Get me on the highways and i tell you the old digger will just about kill any new 6's on the market for fuel econemy, And i was told the Ecotec was going to be much better? Please be.


If we sat down to calculated advantages and disadvantages I'm sure he would still be right now behind me in savings. He's been LPG for around 6-9 months.



Side note if curious, I replaced the L1 original cluster in 2005 with this L2 cluster.

[redTT]

I recently had my 4WD Ford Territory converted to LPG and absolutely loving my fuel cost savings. Im getting the same space and comfort as an SUV, keep the same mechanic I have now, buy cheap parts as normal territory owners, and a cost savings which would make diesel and some hybrid owners blush.

Call me greedy..........but i dont really care if the government axes the subsidy. I've got mine and dont care about anyone else :-).

[JoeT]

LPG Advantage Grows

Marton Pettendy
27 May 2008
www.goauto.com.au

LPG offers ‘immense’ savings over diesel and petrol per annum.

The price of diesel may be soaring ahead of both petrol and LPG, but based on an average price of 65 CPL, LPG-powered versions of both the current FG Falcon and VE Commodore still take just one and three years respectively to negate their higher purchase prices – before the federal government’s LPG vehicle subsidy is factored in.

The latter provides a $2000 rebate for private motorists who convert a petrolpowered vehicle to run on LPG Autogas and $1000 for a new LPG vehicle. More than 125,000 private motorists have converted their vehicles or bought new LPG-powered vehicles with the help of the government grants since the scheme was introduced in August 2006.

LPG Australia last week said the savings offered by LPG vehicles have never been greater, with Autogas retail prices remaining at least 90 cents lower than last week’s new record petrol price of $1.60 per litre. Last month the national average ULP price was $142.9 per litre, compared to 66.3 cents for Autogas.

“While LPG is not immune from price fluctuations caused by world oil markets,
Autogas typically sells for less than half the price per litre of ULP petrol. Over the course of a calendar year it clearly offers an immense savings advantage,” said LPG Australia industry development manager Phil Westlake.

“If you are spending $80 per week on petrol now, you’ll be spending $40 or less on Autogas. That’s $40 per week that stays in your back pocket.

“Even without a $2000 grant, a motorist who converts a six-cylinder engine to run on Autogas will recover their conversion investment in under two years – assuming they travel 25,000km per year and their
conversion cost $3000.

Click here to continue article



Diesel Dilemma

Marton Pettendy
27 May 2008
www.goauto.com.au

Diesel prices soar relative to petrol, just as cleaner-burning Euro oilers gain pace.

The increasing disparity between petrol and diesel pump prices due to soaring demand for diesel fuel in Asia has dramatically increased the length of time it takes to recoup the extra cost of purchasing diesel cars, a GoAuto investigation has revealed.

The retail price of diesel in Sydney last week reached $1.80 per litre – up to 35 cents more than unleaded petrol at the same sites – and experts predict the recent earthquake in China could further increase the demand for diesel there and therefore its retail price here.

Last year, sales of petrol passenger cars to business purchasers rose by more than 88 per cent and sales to private buyers increased by almost 63 per cent. Sales of diesel passenger cars to private buyers have risen more than 50 per cent so far this year while private petrol car sales have dropped by five per cent.

Click here to continue article

[Slick_Holden]

As we move towards Diesel the price's change.

[JoeT]

Diesel Doubts Continue

Philip Lord & Marton Pettendy
4 June 2008
www.goauto.com.au

The GoAuto investigation last week into the growing disparity in price between petrol and diesel fuel, and how it affects the time taken to repay the cost of diesel passenger cars versus petrol cars, attracted a strong response from readers in favour of diesel vehicles.

While the story deliberately dealt only with the impact of increased diesel prices and the dramatic direct impact it has on the time it takes to repay the initial outlay, many readers have argued that we did not include important factors such as the resale value or servicing costs of diesel vehicles – and that there are some diesels that do not cost any more than an equivalent petrol version to buy.

Diesel cars sold in Australia that are also offered as a petrol generally cost extra. As a rule, the diesel passenger car price premium is between $1000 and $4000. Only six diesel models carry the same price as the petrol version, with two actually being cheaper (the Volkswagen Passat and Eos).

Our examples last week used a generous annual distance of 20,000km, but according to the latest Australian Bureau of Statistics publication 'Survey of Motor Vehicle Use', the average annual mileage for the Australian vehicle fleet is 14,600km.

This average includes the articulated truck average annual distance of 88,300km, meaning that the private Australian car travels even less than 14,600km.

Using the 14,600km figure, the time to pay off the estimated diesel premium on the sticker price will take much longer than our estimates last week – which in the 2010 Falcon’s case is 23 years at current fuel prices.

If diesel rises to $1.94 and petrol stays the same price, in our example using a diesel Falcon the diesel advantage would be nullified and the initial cost penalty would not be returned by better fuel efficiency.

Click here to continue article