Why We Should Consider an LPG Installation

As petrol prices continue to climb higher and higher, perhaps the idea of a switch to LPG is not so far-fetched.

LPG nozzleThe savings add up long term, the government offers a generous subsidy and your car will have a smaller footprint on the environment.


Let’s have a closer look at the benefits of switching to LPG.

LPG is typically at least 50 percent cheaper than other automotive fuels, meaning you can achieve significant savings from day one, and recover the cost of a conversion in a relatively short period of time.


Assuming over a year that LPG averaged 65 cents per litre while unleaded petrol averaged $1.25 per Litre. An average Commodore or Falcon traveling 15,000 kilometres per year would save around $24 per week on fuel.
Typical LPG conversion costs range from $1,500 to $3,500 depending on the type of vehicle.

LPG Grants

In the 2009 budget, the Treasurer made slight changes to the grants for LPG conversion. Whilst the Federal Government has announced some changes, the LPG rebate scheme will still provide support for LPG conversions in the years ahead.

Essentially the grant for factory vehicles remains as is but the grant for retrofit vehicles is gradually being reduced by $250 per annum over 4 years starting 1 July 2009. By 2012 the grant will be $1000 and the OEM Factory LPG rebate will remain at $2000.

The government has also now provided a written commitment to continue the scheme for another five years until 30 June 2014.

On 27 January 2011 the Prime Minister announced that from 1 July 2011 the LPG Vehicle Scheme will be capped at 25,000 claims for each financial year for the life of the scheme.

Key Points

From 1 July 2010, the LPG Vehicle Scheme will provide grants for conversions of private use vehicles at the following rates…

1. $1,500 for conversions 1 July 2010 to 30 June 2011

2. $1,250 for conversions 1 July 2011 to 30 June 2012

3. $1,000 for conversions 1 July 2012 to 30 June 2014

New private use vehicles fitted with an LPG unit prior to first registration will receive a grant of $2,000. This grant will remain at $2,000 for the life of the Scheme.


What Do You Need To Claim Your Grant?
From July 1st 2010 applicants for LPG grants are required to provide certified copies of 3 categories of supporting documents as follows:

  1. Current driver’s licence
  2. Vehicle registration papers
  3. Proof of payment for LPG conversion or proof of payment of a new LPG vehicle

Need More Information? 

To establish whether you qualify for a grant, please click here  to visit the Austindustry website, or you can simply call your local Repco Authorised Service Centre.


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