UPDATED: Pulling up at a service station to fill up your car with liquid petroleum gas (LPG) is rapidly becoming a thing of the past as outlets begin to remove the gas outlets in the face of declining sales.
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Around 50 per cent of Ballarat service stations and fuel outlets no longer offer LPG, with most independents having removed their bowsers up to three years ago.
Brand fuel outlets such as Caltex Star and Coles Express are removing their supply points as they renovate stations.
The Coles Express Shell service station in Maryborough removed its LPG nozzles recently. An attendant at the station said the gas was taken away as the business was losing money having to provide it.
A Coles spokesperson provided the following statement on the removals.
"Fuel wholesaler Viva Energy Australia and Coles Express are constantly reviewing the range of fuels offered to customers to ensure we can best meet customer demand.
“In line with changing customer preferences, we are increasing the availability of diesel pumps nationally and removing LPG from sites where demand is low. We apologise to LPG customers who may be inconvenienced by this decision, and have sought to give customers as much notice as possible."
Bryce Prosser, general manager of public policy and corporate affairs with the RACV, says LPG demand is diminishing.
“Many service stations are finding that the cost of selling LPG is too expensive considering the lower demand – some stations are even making a loss on LPG,” he says.
He says the decline in availability is not putting cars out of action, as most fitted for LPG operation are ‘duel-fuel’, meaning they can also run conventional petrol in the event that LPG is not available.
“LPG was a popular choice when cars were less fuel efficient, however with technological advances in petrol engines, the economics of LPG no longer add up, and consumers are opting for new technology, whether it be more efficient petrol engines, hybrid cars, or even electric cars.”
Leading motoring journalist Toby Hagon says one of the obvious reasons for the decline is the cessation of manufacture of two car models that offered LPG as standard: the Ford Falcon and Holden Commodore.
Combined with the rise of effective hybrid and new technology diesel vehicles, Mr Hagon says there would be little appetite for after-market conversions these days.
“There have been significant technological advances in the past few years. Taxi fleets are increasingly turning to hybrids like the Toyota Camry and Prius. These vehicles are ideal for taxi service; they are very good at stop-start journeys rather than long trips,” he said.
CEO of the Australasian Convenience and Petroleum Marketers Association Mark McKenzie says the industry is not withdrawing from providing LPG; rather businesses are scaling back as demand declines.
He agrees with Toby Hagon that the end of vehicle manufacture in Australia, especially Commodore and Falcon manufacture, has hastened the drop in usage.
“It’s declined around 60 per cent in the last six years,” says Mr McKenzie.
“There’s no formal plan for LPG to be phased out, it’s rather ad hoc decisions being made by individual businesses.”
Mr McKenzie says as companies such as Coles Express and Woolworths undertake a refurbishment plan for their stations, they are making business choices not to reinstall LPG bowsers.
Due to competition laws, it’s not legal for fuel outlets to make collaborative decisions on how they might effectively supply LPG to a falling market, he says.
“For example, in a town like Maryborough, I think there are four outlets there? With the decline in demand it doesn’t make sense for all four to try and maintain LPG sales when there are only small volumes being sold. It would be better for one to do that.
“We need to maintain coverage while still meeting commercial outcomes, and there’s a role for both state and federal government to play here. Currently (the industry) is getting mixed messages from government.”
That LPG was once promoted by government – it was excise-free – making it a cheaper alternative for many on lower incomes, Mr McKenzie says it’s sad to see the energy source now neglected by government.
“Of course it now attracts excise, so it’s not as viable. It was always much more popular in the southern states, especially in Victoria,” he says.
“I know a lot of older people, retired people who like to travel and tow caravans, and who may have an older, converted car, they rely on LPG as their fuel source. Those people are vulnerable to this reduction.”
Mr McKenzie says there are no plans to let the supply of LPG fall to nothing, but there needs be a concrete plan put into place to help the shift to less availabilty – and the State Government has a role to play in co-ordinating that planning.
The Victorian Minister for Energy, Environment and Climate Change has been contacted for interview.
