my car

The number of cars that require LRP has reduced to the point that it is becoming increasingly unviable for fuel suppliers to produce, store and distribute the fuel, and for service stations to retail it.

Accordingly, motorists should expect that LRP will be phased out of the market over time. The timing of this will vary around the country and between fuel suppliers and individual service stations. However, motorists will find it increasingly difficult to find LRP over the coming years.

what are the alternatives to filling with LRP?

Running a car on unleaded petrol

Some pre-1986 vehicles can run on unleaded or premium unleaded petrol. Motorists can check whether their vehicles fit into this category from a list published on the Australian Institute of Petroleum website.

Anti-VSR additives

Failing this, the best choice for running a vehicle after the phase out is to substitute LRP with premium unleaded petrol (PULP) and a lead substitute (anti-VSR additive). The increased octane number of the PULP will cover problems with knocking and the lead substitute will prevent any valve seat recession.

VSR additives are stocked at the major fuel suppliers and retail outlets.

Reconditioning the engine head

Motorists that own a pre-1986 car that requires an engine overhaul might consider having the engine reconditioned as part of the work so that the car can run on unleaded petrol.

Typically, cars that should use premium unleaded petrol include:

• Many imported cars and high-performance cars require premium unleaded. While some of these cars may have knock sensors to adjust timing when lower octane regular unleaded petrol is used, others do not. It is important to use premium unleaded if the vehicle manufacturer recommends it. Using premium unleaded in a car that is not designed for higher-octane petrol will not necessarily result in improved performance.
• Pre-1986 vehicles can benefit from the high-octane properties of premium unleaded, as many of these vehicles were designed for high-octane petrol. However, if premium unleaded is used in pre-1986 vehicles, the engine may need to be modified, or an aftermarket anti-valve seat recession additive used to protect the engine.

Premium unleaded usually has a RON of 95 to 96, although a number of products are produced with a RON of 98. Premium unleaded products are also marketed as having various detergents that claim to provide cleansing benefits to vehicle engines.

Regular unleaded petrol was introduced in 1986, and is the recommended fuel for most passenger cars made since this date. It was introduced to enable new vehicles to operate with a catalytic converter, a device that reduces exhaust emissions.

Regular unleaded typically has a Research Octane Number (RON) of 91 to 92.

Under the National Fuel Quality Standards, a national standard for regular unleaded petrol was introduced and enforced for the first time from January 2002.

Automotive diesel fuel is designed for compression ignition diesel engines. Although diesel engines are common in passenger vehicles in Europe, they are not as common in Australia, with the exception of four-wheel-drives. Under the National Fuel Quality Standards, a national standard for automotive diesel was introduced and enforced for the first time from January 2002.

LPG, also known as autogas, is the most commonly used alternative fuel for vehicles. It consists mainly of a mixture of propane and butane. The majority of service stations in metropolitan and regional centres now supply LPG, with approximately 3,500 service stations supplying it nationally.

LPG can provide savings in fuel costs, depending on the price difference with petrol and the cost of engine conversion. LPG can also provide some environmental benefits, particularly a reduction in greenhouse gas emissions. A National Fuel Quality Standard for automotive LPG took effect in March 2004.

Some vehicles are being manufactured as dual-fuel or dedicated LPG vehicles. Conversion of a petrol vehicle to use LPG must be accordance with the Australian Standards. It is important that any aftermarket LPG system is installed by a business that is registered with the Automotive Alternative Fuels Registration Board (AAFRB),. To locate an accredited installer near you, visit the Australian Liquefied Petroleum Gas Association

introduction

Historically, motorists have chosen alternative fuel such as Autogas (LPG) for the potential vehicle operating cost savings. But now with the introduction of a fuel excise on LPG to be phased in from 2011, motorists will be questioning the financial advantages. In this information sheet, RACV takes a look at this and other LPG issues.

RACV position

RACV recommends that fleets and motorists consider an LPG vehicle:

• When looking to improve their Greenhouse performance, or
• When looking to make a financial saving for higher annual distance vehicles

what is LPG?

LPG is the most commonly used alternative fuel for vehicles, particularly in Victoria where more than half the nation's LPG vehicles are registered. With approximately 250,000 LPG fuelled vehicles in Victoria, demand has resulted in the majority of service stations in metropolitan and regional centres now supplying LPG. Over 3,200 fuel outlets nationally supply automotive LPG.

Automotive LPG consists mainly of a mixture of propane and butane. At any one time the proportion of propane and butane in commercially available LPG can vary, but in Melbourne is typically around 60 percent (by volume) propane and 40 percent butane. This varying composition can marginally influence the exhaust emissions and fuel consumption of a particular vehicle.

The two major sources of LPG are from natural gas processing and petroleum refining. Although it has a higher octane rating than regular unleaded petrol (about 105 compared with 91?), it has a lower energy density, which results in a fuel consumption that is usually about 30 percent greater per kilometre. It is stored as a liquid under pressure, but at ambient pressure and temperatures becomes a gas.

purchasing a LPG vehicle

There are a number of different types of LPG systems that can be purchased. They can either be dedicated LPG systems, a factory backed conversion, or an after market conversion. Each type has various pros and cons and these are listed below

LPG Conversions and Servicing

The majority of vehicles that use LPG are bi-fuel (often referred to as dual-fuel), meaning that the petrol fuel system has been maintained whilst adding the LPG system. While these systems are not fully optimised for LPG, they often maintain the petrol tank as well, meaning that the effective range of the vehicle is increased and the motorist has the option of running petrol or LPG. Some of these systems are warranted by the vehicle manufacturers, while others are purely aftermarket systems.

Original Equipment (factory backed) conversions

Conversions can be done at the point of ordering a new vehicle. These systems come from the factory and are backed by servicing and warranties. These vehicles include:

• Holden VZ Commodore
• Holden Rodeo
• Toyota Camry
• Toyota Avalon
• Toyota HiAce

Aftermarket LPG conversions

While most vehicles have the potential to be converted to LPG, newer vehicles must only be fitted with conversion kits that have shown compliance with emissions regulations. An up-to-date list of vehicles that have approved LPG installations is available at the link: http://www.lpgautogas.com.au/index.cfm?Action=Convert

It is important that any aftermarket LPG systems are installed in accordance with Australian Standards AS 1425 and AS 3509, and that servicing and maintenance of LPG systems is performed by an individual or business that is registered with the Automotive Alternative Fuels Registration Board (AAFRB). This is important to ensure that the work is performed correctly, and that there is no compromise in vehicle safety or emissions. It is also a safety requirement that LPG cylinders be inspected and pressure-tested every 10 years.

Dedicated LPG vehicles

The petrol tank makes way for an LPG cylinder and the engines are designed for LPG. The Ford Falcon Sedan, Wagon and Ute is the only dedicated LPG vehicle on the market.

fuel excise

Unlike petrol and diesel, LPG has historically been excise free. However, in December 2003 the Federal government announced an excise on LPG which will progressively add 2.5 cents per litre each year from 2011 until 2015 when it is capped at 12.5 cents per litre. See figure 1.

Figure 1: LPG excise phase in

government rebate

With the introduction of the LPG excise, the Government also announced an offer of $1000 cash back on newly converted vehicles, or dedicated LPG systems for those purchased from 2011 to 2013.

is it worth converting your car to LPG?

Because LPG generally increases fuel consumption by up to 30 percent, the cost effectiveness of LPG conversions is based on LPG being cheaper than unleaded petrol. Average prices for November 04 - May 05 (ULP 99 cents per litre, LPG 42 cents per litre) show that LPG maintains a pricing advantage of around 60 cents per litre. The pricing advantage is due largely to the excise currently applied to unleaded fuel at 38.143 cents per litre. Check daily LPG and unleaded petrol prices.

Based on the November 04 - May 05 prices a typical LPG installation costing $2,500 (installations can cost between $1,500 and $3,400) could be recovered in around 50,000 kilometres. For each kilometre driven after this point a saving will be made and therefore, the higher the kilometres travelled the greater the financial benefit. Projecting this trend to 100,000 km, a saving of around $2,700 could be made.

But is it still cost effective after excise is added? Adding excise to the current price of LPG reduces the savings that can be made. However fuel cost savings can still be made, particularly with high annual distance vehicles like taxis and sales rep vehicles. Also remember that LPG excise is still six years away from being introduced. RACV advises motorists to do their own calculations before purchasing an LPG vehicle.

Figure 2 demonstrates these scenarios.

Figure 2: LPG Installation fuel savings

Fuel savings are not the only vehicle operating factors that apply to LPG conversions. Other factors include:

Finance Costs
Covering the installation fee, or increased sale price on a dual fuel vehicle, incurs a finance cost. This is either in the form of higher loan repaymentsor the loss of opportunity to invest the money.

Depreciation
Some of the money invested in a LPG conversion or in the extra cost of a duelfuel version may be recovered when it comes to resale.

Servicing
Due to the added complexity of LPG systems, servicing costs can be higher insome cases.

is it worth purchasing a dedicated LPG vehicle?

RACV's Vehicle Operating Costs survey shows how all vehicle costs balance and is the best way of comparing new LPG variants to petrol variants. Table 1 below summarises the 2005 survey findings. Savings of around $6 per week could be made by purchasing a dedicated LPG Falcon sedan as compared to petrol only Falcon sedan. The costs are calculated over a 5 year, 15,000 km per year period.

Table 1: Vehicle operating costs comparison between LPG Falcon and petrol equivalent

fuel quality and residue issues

During the winter months, there are a number of motorists using LPG who have experienced start-up and driveability problems. The cause of these symptoms has been attributed to the build up of a brown, waxy residue in the converter of the LPG fuel system. The number of residue cases reported to RACV has dropped, suggesting that the situation has improved. If you do notice any problems with residue contact RACV motoring advice on (03) 9790 2190 or a registered LPG installer.

RACV has assisted in the development of mandatory national LPG Autogas fuel standard which was introduced in March 2004. This standard aims to ensure the quality of LPG Autogas in the market, and possibly assist in the control of residues and other contaminants. Further, it will control fuel parameters to improve environmental outcomes and facilitate the uptake of future technologies

emissions

LPG has the potential to emit less environmentally damaging emissions than petrol. In particular, a reduction in the emission of the greenhouse gas carbon dioxide in the order of 15 percent can be achieved. However, studies have shown that the emissions potential of LPG will only be realised if the LPG fuel system is installed and maintained correctly.

In the past there have been emissions problems with vehicles with poorly designed and installed kits. In 1995, the federal government funded an extension to the Federal Office of Road Safety's National In-Service Vehicle Emissions (NISE) Study. This extension examined the emissions performance of 36 LPG vehicles using similar testing protocols to the main petrol vehicle NISE study. The report from the LPG study found that for post-1986 vehicles, LPG gave lower hydrocarbon (HC) emissions, but slightly higher carbon monoxide (CO) and oxides of nitrogen (NOx) emissions, than NISE study petrol vehicles of similar make and model. With the introduction of type approval for all LPG installation kits, LPG vehicles must now meet the same emissions standards as for normal petrol engines which should eliminate many of these problems.

LPG disadvantages

While LPG has been shown to provide cost and environmental benefits in some cases there are a range of convenience disadvantages that also must be considered. These include:

• LPG systems are not available on all models
• Depending on the type of body, LPG cylinders can encroach on boot space, sometimes taking the place of the spare tyre.
• Despite the widespread availability of LPG at service stations, you may still need to plan longer trips via service stations with LPG. However, dual fuel vehicles have the added capacity of both tanks which increases the range of the vehicle substantially. LPG outlets can found from the LPG Autogas website http://www.nowwhereroute.com/alpga/LocatorPlanner/searchpage.aspx
• Cylinders must be inspected and tested after 10 years

LPG and car fires

RACV is unaware of any evidence that LPG equipped vehicles are more likely to catch fire than a petrol-powered equivalent. Being denser than air and highly flammable, there can be safety implications if LPG leaks in a confined area. Automotive LPG systems are designed to prevent gas leakage which raises the risk of fire. Fires associated with LPG systems are often found to have resulted from unauthorised installations or inadequate maintenance. This is why it is essential that any LPG installations and servicing be performed by an accredited professional.

web links

• For more information on LPG Autogas fuel standards click on http://www.deh.gov.au/atmosphere/lpg/index.html
• RACV's annual Vehicle Operating Costs survey
  

Petrol with up to 10 % ethanol (E10) is sold mainly in the eastern States of Australia. As ethanol is made from renewable resources, for example wheat and sugar cane, it can reduce the amount of greenhouse gases emitted from vehicles. However, this depends on how the ethanol is made and the content of ethanol in the fuel. At 10%, there are unlikely to be significant greenhouse benefits. Ethanol can potentially reduce the amount of some air pollutants but increases others. More detailed information on ethanol's environmental effects is available at the Department of the Environment and Heritage.

As ethanol can corrode some materials, it is not suitable for all cars. In particular, manufacturers tend to recommend not using ethanol in cars made prior to 1986. Before using an ethanol blend fuel in your car, make sure that it is suitable for your car. Check the vehicle handbook or ask the manufacturer before using it. To find out whether your vehicle may operate on E10, visit the Federal Chamber of Automotive Industries.

So you can tell whether you are buying an ethanol blend fuel, Australian regulations require a label on bowsers where the fuel contains more than 1% ethanol.

Although not legally required to do so, some retailers put signs on their bowsers saying that their fuel does not contain ethanol.

The maximum legal limit for ethanol in petrol is 10%.

For further information see:

• Petrol prices
• Fuel tax

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