LPG Conversion Cost & Savings | Motoring About

Many people want to know how much an LPG conversion costs. But in reality prices will vary from workshop to workshop. Not to mention there are numerous tank sizes and options for different vehicles. To get a better understanding we’ve decided to put together a very simple table to show the LPG conversion cost and savings over a five year period.

Please realise that this is based on a few of our own estimates and doesn’t take into account any car running costs other than the LPG system and the purchase of fuel. This has been put together to give you an indication into the money you can save by having an LPG system installed. Some things to note…

LPG conversion cost:

Numerous websites give different LPG conversion cost estimates between $1,500 and $4,500. Based on this we have provided savings calculations on four prices of $1,500, $2,500, $3,500 and $4,500.

LPG system size:

As LPG system capacities vary, we decided to increase the size of each system in line with the estimated costs above. They are 40L, 50L, 60L and 70L respectively.


As the amount of times people head to the pump to refuel also varies, we decided to settle on once every fortnight and the tank is completely filled.

Fuel prices:

We decided to take the 2011/2012 (national) average price and add 1% of inflation year over year for both LPG and ULP. We also added the increasing Federal Government excise tax to LPG prices. This equates to 2.5c of tax added per year from 2011 until reaching 12.5c in 2015.

LPG grants:

We have added the grants to the end of the table based on the maximum grant available in 2011 to coincide with the use of 2011/2012 fuel prices.

LPG conversion cost table

REMEMBER we want to stress that this is a very basic calculation but you can see there are considerable savings to be had and these will continue as long as LPG prices stay below ULP and diesel, which is easily foreseeable into the near future.

In regards to the LPG grant, it is now capped at 25,000 per year, which means you could miss out. If you do have an LPG conversion make sure you lodge your grant forms as early as possible for the best chance of receiving a rebate.

Think there is anything we should add or have any questions? Let us know in the comments below!

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