Price of LPG going up?

flappist · 21-12-2008, 06:30 PM

I heard a rumour today that the price of LPG will be going up to about the same as ULP after Xmas. The source was very credible but wishes to remain anonymous.
If this is actually the case then I suspect there will be a lot of unhappy people who have converted their cars.

Has anyone else actually heard anything (as opposed to their personal opinion) that can confirm or deny this?

vztrt · 21-12-2008, 06:34 PM

OK lets say this is true.
What reason would be given seeing as the entire world is slowing down and demand for this resource won't be as high?

XR Martin · 21-12-2008, 06:39 PM

Well it certainly isnt going down. Here petrol has dropped atleast 50c/L in the last 4 months, LPG hasnt dropped at all. (still 55-60c a litre)

flappist · 21-12-2008, 06:43 PM

Quote:

Originally Posted by vztrt

OK lets say this is true.
What reason would be given seeing as the entire world is slowing down and demand for this resource won't be as high?

To me it does not make sense as there has been a push to convince people to convert to this fuel but maybe it will just be an excise increase. There will have been a major shortfall in government income since the price dropped.

The LPG push was by the previous government so it is not exactly a back flip if it is infact implemented.

But as I stated in the first post, the source seems to be fairly knowlegable.

4Vman · 21-12-2008, 06:53 PM

It wasnt the same person who said petrol would be $2.00/L by xmas was it??!!
I saw LPG for $0.41/L today.

Spanrz · 21-12-2008, 06:58 PM

Is it the Fed Gov / State Gov's LPG tax coming into fashion....???

I know a few years ago, there was a Gov ruiling, that a tax (duty) was implied on LPG, but the tax was seen as to make LPG come into square with Petrol, as Petrol had a duty tax and LPG didn't.

Yellow_Festiva · 21-12-2008, 06:59 PM

Hmmm a 100% increase......

Christmas is just around the corner so we shall know soon enough.

**PepeLePew** · 21-12-2008, 07:16 PM

Doesnt look there is any change in the position of the Saudi price the stuff is tied to....and even with any excise there isnt going to be a 100% increase in the price.

Its interesting the power of the internet. Even if this post as no basis there are those who will read it and it'll seed doubt....

Of course they're still screwing our transport industry with diesel so nothing is completely out of the question. Might as well add the taxi industry...

ivorya · 21-12-2008, 09:06 PM

I thought the fed gov have said that they need to tax LPG but only to a max of 12c. I guess we'll wait and see

Perana · 21-12-2008, 09:10 PM

Yeah and ULP was going to be $2/L by christmas....

LPG is getting excise added at the rate of 2.5cpl until it hits 12.5cpl though.

If anything i'd say that a discontinuation of the $2000 grant would be more likely. Though this is still unlikely since they have just last month doubled the grant for New Vehicles...

baboon · 21-12-2008, 09:58 PM

We are still in a long term bull market in resources. Oil production has been reduced by 2.5million barrels.

When US$ goes up oil comes down, but when US$ goes down oil goes up.

The US are in debt and are printing millions of dollars on their printing presses to devalue the dollar. The US dollar is going to collapse if they continue to print money. This will also add pressure to oil prices and they will continue their way up again.

If the government subsidies something like gas conversions, they are making an investment for the future. The money will have to come back to them somehow and will probably be from a rise in excise.

These are my opinions only, but I truely beleive that we'll see higher prices in oil next year or two...

**GasoLane** · 21-12-2008, 10:28 PM

Quote:

Originally Posted by baboon

The US are in debt and are printing millions of dollars on their printing presses to devalue the dollar. The US dollar is going to collapse if they continue to print money.

Say what?

Is Pauline Hanson running things in the US treasury these days?

minheim · 21-12-2008, 11:13 PM

Traditionally LPG prices rise in Australia in summer as it is the Northern Hemisphere winter and hence the Saudi price (used by us for benching export parity) rises due to increased demand.
That said I can't see it being the same price as petrol given it is not as efficient. It it were the same people with dual fuel would use petrol and then supply would exceed demand here and prices would drop. We might see it become less advanatgeous to use gas if petrol stayed low given the greater volume required for equal kms. Whether international recession affects petrol and gas equally I don't know but I suspect it will still be cheaper in Australia to run on gas.

baboon · 21-12-2008, 11:22 PM

Quote:

Originally Posted by GasOLane

Say what?

Is Pauline Hanson running things in the US treasury these days?

She might as well be. The US have borrowed and consumed way way too much. The stimulus packages they are producing is either borrowed money from other countries or from the Fed reserves printing press.

Once other countries realise the US cannot pay the money back they'll stop lending to the US. The US will have to keep printing money to bail out the car manufacturers again when they find out the $13 billion wasnt enough. Other companies will ask for a bailout too and they'll keep printing money. This will cause hyperinflation. Not good for oil price as it is priced in US$.

I wish them goodluck.

sgt_doofey · 21-12-2008, 11:57 PM

Excise doesn't come in to affect until 2011. Then it's 2.5c/L, adding 2.5c/L every year until it's 12.5c/L. It's not that.

We've seen LPG prices drop here in Adelaide. I saw it as low as 44c/L today. Hasn't been that low for a while.

alter_EGOXR · 22-12-2008, 12:13 AM

dont understand why LPG would increase when petrol is decreasing, afterall i always thought as long as they make petrol theres always gonna be LPG....and isnt the government still giving rebates for LPG conversion?? Whats the rebate on it?? still 2gs?

flappist · 22-12-2008, 12:18 AM

Quote:

Originally Posted by sgt_doofey

Excise doesn't come in to affect until 2011. Then it's 2.5c/L, adding 2.5c/L every year until it's 12.5c/L. It's not that.

We've seen LPG prices drop here in Adelaide. I saw it as low as 44c/L today. Hasn't been that low for a while.

That was the goverment promise..

Hopefully it will not be like:

No child living in poverty by 1990.
It is L A W law.
There will NOT be a GST.

etc etc etc......

gtfpv · 22-12-2008, 12:49 AM

hmmm . i guess it could be a way to print money here in australia , where tax payers who travel a lot for work can put more money in revenue so they can give it to all those unempoyed people with children you see in the shopping malls pigging out in the hot food stalls laughing and celebrating life everyday.

Perana · 22-12-2008, 12:51 AM

I suggest keeping politics out of this thread if you would like it to stay open...

cupic · 22-12-2008, 01:13 AM

GAS same as Petrol mmmm I will stick with petrol then

cheers

atec77 · 22-12-2008, 02:57 AM

Quote:

Originally Posted by GasOLane

Say what?

Is Pauline Hanson running things in the US treasury these days?

Shame she wasn't
no income tax and a 1% transaction tax with no gst... mmm easy to follow and VERY effective

OLDFORDNUT · 22-12-2008, 09:16 AM

the price of LPG has been around .80cents a litre for 2 years here in the bay,sonow petrol is down in the mid nineties lpg costs much more in real terms as in all older conversions you lose between 30% - 40% efficency per tank full ,it makes petrol cheaper by a big margin,newer systems are much better especialy if direct injection setups ,but majority of LPG cars are over 5 years old,
So it depends a lot on where you live as to any advantage on gas

kocho · 22-12-2008, 10:44 AM

Quote:

Originally Posted by cupic

GAS same as Petrol mmmm I will stick with petrol then

cheers

Yeah, its good having the option.

I've had my car converted for about a year. For the last few weeks, I've been getting at its cheapest price within that year (38.9 cents). Before that, it was consistently 60 cents a litre give or take 4 cents either way. I keep a log on all the fuel I buy, what the price of petrol is at the same time and how much I save.

Whitey-AMG · 22-12-2008, 11:09 AM

Quote:

Originally Posted by 4Vman

It wasnt the same person who said petrol would be $2.00/L by xmas was it??!!
I saw LPG for $0.41/L today.

39 cp/ L at the United in Scoresby Victoria...........
@41 cp/ L at almost every SHELL in the Eastern burbs

Only 3 days left to get it to $1.00 +................

Try this site as well :

http://www.racv.com.au/wps/wcm/conne...ces?CACHE=NONE

Mr Hardware · 22-12-2008, 12:51 PM

I call BS. It won't happen. Any change won't be affected by the government, it'd be from the saudi aramco contract price which doesn't get set until the 1st of each month.

BS.

Brute6 · 22-12-2008, 02:31 PM

I did hear, maybe 12 months ago, that they were going to increase the tax on LPG to bring it in line with ULP...... Money hungry pigs is what the government should call themselves if it goes through....
I wonder how they'll "explain" it to the public?

sgt_doofey · 22-12-2008, 02:43 PM

Quote:

Originally Posted by Brute6

I did hear, maybe 12 months ago, that they were going to increase the tax on LPG to bring it in line with ULP...... Money hungry pigs is what the government should call themselves if it goes through....
I wonder how they'll "explain" it to the public?

It's call excise. It's been public knowledge for a while now. See my previous post. There currently is no excise on LPG, just GST.

Quote:

Last year the Federal Government recognized the environmental benefits of running motor vehicles on Autogas by announcing the fuel would remain excise-free until 2011.

Even after that date, excise will be gradually applied in annual increments of 2.5 cents per litre until it reaches a ceiling of 12.5 cents per litre in 2015.

In comparison, the current excise on petrol in 38.143 cents per litre.

http://www.lpgautogas.com.au/index.cfm?Action=About

vztrt · 22-12-2008, 06:48 PM

Quote:

Originally Posted by minheim

That said I can't see it being the same price as petrol given it is not as efficient. It it were the same people with dual fuel would use petrol and then supply would exceed demand here and prices would drop.

You would be worried if you have straight gas.....or sell cars that are straight gas.

Also if this did happen there would be alot of installers that would be in big trouble.

Racecraft · 22-12-2008, 07:35 PM

The price might go up but I'll bet $100 clams that the quality won't go up accordingly.

For an experiment last week I ran two of my cabs around Brisbane on ULP. One an injected BF and the other my best BA mixer set-up.. 5300 klms later and they saved $85+ over their LPG buddies... While my test wasn't an exact science, it sure opened my eyes to the price difference @ the bowser. If the price gap between the fuels gets any closer I'll be flicking alot of buttons to ULP

TURBOTAXI · 22-12-2008, 08:26 PM

Quote:

Originally Posted by Racecraft

The price might go up but I'll bet $100 clams that the quality won't go up accordingly.

For an experiment last week I ran two of my cabs around Brisbane on ULP. One an injected BF and the other my best BA mixer set-up.. 5300 klms later and they saved $85+ over their LPG buddies... While my test wasn't an exact science, it sure opened my eyes to the price difference @ the bowser. If the price gap between the fuels gets any closer I'll be flicking alot of buttons to ULP

That it shocking.

LPG price should be dropping, if it doesnt I need to get my act together an design a more energy effecient car........though it seems like allot of work.