Price of LPG

Auuteage · 13-01-2008, 12:13 PM

...is just criminal. Its gone up over 20c per litre in just a few months. Dunno how the pricing ir cycle of LPG works, anyone know?

If you use a tank a day or more like I do, it now represents more than $200 extra per month in costs compared to august and prior.

In fact, the price was quite stable for years and then bang. Wonder if its got anything to do with the government giving out grants for conversions, waiting for a while, then enginerring a massive price increase? I bet. Disgusting pigs. And people wonder why I am so viscious on politicians and think they are worse than the filth of the earth.

Miller · 13-01-2008, 12:27 PM

It should start going back down soonish now that the holiday season is ending

toyotaxr8 · 13-01-2008, 12:42 PM

just say the your a japanese gas power plant and but it from Australia for 8 cents a tone yet we pay 69 cents a liter good isn't it

The Mighty Red · 13-01-2008, 12:45 PM

Quote:

Originally Posted by Auuteage

If you use a tank a day or more like I do, it now represents more than $200 extra per month in costs compared to august and prior.

A tank a day.....WTF?

kenz · 13-01-2008, 12:59 PM

Lately it doesnt seem to be going up 1c at a time like it used to its more like 4c or 5c in one go

DoreSlamR · 13-01-2008, 02:57 PM

C'mon considering LPG is currently the cheapest fuel you can buy i find it hard to understand why you wold complain about it. Yeah it sucks that it increases in price, but so does everything else.

From what i understand about LPG it burns up faster than normal unleaded. Maybe, if you use so much in a day you should consider a diesel powered vehicle?

ayeyew · 13-01-2008, 03:00 PM

Quote:

Originally Posted by Auuteage

...is just criminal. Its gone up over 20c per litre in just a few months. Dunno how the pricing ir cycle of LPG works, anyone know?

LPG prices are based on international prices, mainly the Saudi Aramco COntract Price, which changes each month.

Essentially LPG is produced from crude oil, much like regual petroleum, so it should undergo similar ups and downs.

There has been many impacts on the LPG sector globally, such as Asian petrochemical industries switching to LPG from other higher priced crude-based feedstocks. Keep in mind, the northern hemisphere is also in Winter, which would correlate to a higher demand for LPG. The current prices per metric tonne of both propane and butane are upwards of $1000 AUD.

September 2007 they were less than $700

That is a 42% increase in 4 months

Orbit · 13-01-2008, 04:01 PM

As mentioned above,

LPG can occur naturally with other hydrocarbons such as wet natural gas in oil and gasfields, or it can be extracted at oil refineries during the production of other petroleum products.

World prices of LPG in general move in line with crude oil prices, although as with most commodities it does have its own supply and demand parameters (e.g. Euopean winter), which is a critical determinant of price. Most worldwide producers use a set Saudi Aramco Contract Price (Saudi CP) as a world marker price upon which exports and domestic sales to wholesalers (marketers) are negotiated. The reason for this is that there are few other world quoted prices and Saudi Arabia is the world's largest producer of LPG.

Australia is more than self sufficient in LPG supplies, Australia is also a substantial exporter of LPG and also an importer.

Add to this that over the last decade the global demand for LPG has simply exploded.

The Australian Competition and Consumer Commission (ACCC) monitors LPG prices in major capital cities, using the commercial services of Informed Sources Limited. The monitoring of LPG prices is much less extensive than that undertaken for petrol and diesel prices, which include a hundred, designated 'hot spots' including regional centres.

According to the ACCC, market volumes greatly influence price levels, for instance country centres which retail lower volumes can and do pay considerably higher prices. This pricing arrangement (much higher prices in regional areas) has attracted considerable attention from many commentators including members of the various Parliaments in Australia and there has never really been satisfactory answers provided! (and recently noted 97.7cpl in a regional center!!!)

Additionally the only excise paid on LPG is GST, but the government is looking to introduce further excise in the not to distant future, atleast in part to counter the success and resultant downturn in revenue from the LPG installation rebate program... should this get though LPG is likley to be priced so that it is only 10-15% cheaper to run then petrol or diesel. And gone will be the days of LPG being tagged to approximate 50% of the petrol price.

Natural gas may be the short term answer to cheaper fuel, but there are some legal and technological issues to overcome first.

But inexpensive motoring is truely starting to come to and end.

ORB.

Orbit · 13-01-2008, 04:06 PM

Quote:

Originally Posted by DoreSlamR

C'mon considering LPG is currently the cheapest fuel you can buy i find it hard to understand why you wold complain about it. Yeah it sucks that it increases in price, but so does everything else.

From what i understand about LPG it burns up faster than normal unleaded. Maybe, if you use so much in a day you should consider a diesel powered vehicle?

1. If petrol went up 20cpl in the space of a few weeks see how that would affect you....makes no difference what relative price it is, a big increase is a big increase.

2. The new Vapour injection systems are returning equivalent petrol performance and consumption figures.

GK · 13-01-2008, 04:16 PM

Quote:

Originally Posted by Orbit

If petrol went up 20cpl in the space of a few weeks see how that would affect you....makes no difference what relative price it is, a big increase is a big increase.

Agree totally.

It's a disgrace, especially since we know we are exporting gas to Asian countries for next to nothing.

We continually seem to be ripping off our own people and giving the sweet deals to those overseas. Aussie fair go, I'd like to see that!

:

GK

DoreSlamR · 13-01-2008, 04:20 PM

Quote:

Originally Posted by Orbit

1. If petrol went up 20cpl in the space of a few weeks see how that would affect you....makes no difference what relative price it is, a big increase is a big increase.

2. The new Vapour injection systems are returning equivalent petrol performance and consumption figures.

Don't worry it has, like Miller says it spikes over the xmas holiday period but at least LPG is gonna be cheaper in comparison no matter what either fuel costs.

For the record i drive a v8 and run it on premium unleaded. You won't find me complaining about what the costs of fuel are. I'm enjoying it while it lasts. I think we all should.

LindsayGT · 13-01-2008, 05:12 PM

Quote:

Originally Posted by Orbit

2. The new Vapour injection systems are returning equivalent petrol performance and consumption figures.

Equivalent petrol performance - yes!

Equivalent consumption - no! At least on my Parnell/Prins VSI kit.
25% worse on LPG around town.
34% worse on LPG on a country run.

And the installers claim it's the best system around!!!!! Technically maybe, in practice, I wonder!

GK · 13-01-2008, 05:33 PM

Quote:

Originally Posted by LindsayGT

Equivalent petrol performance - yes!

Equivalent consumption - no! At least on my Parnell/Prins VSI kit.
25% worse on LPG around town.
34% worse on LPG on a country run.

And the installers claim it's the best system around!!!!! Technically maybe, in practice, I wonder!

Ouch! Somethings got to be wrong with it mate. Everyone is saying that the consumption is heaps better with VSI than a mixer ring (or equivalent) set up.

Get them to justify why you're getting such crummy figures!

GK

**Mechan1k** · 13-01-2008, 07:41 PM

Quote:

Originally Posted by Our Blue XR6

A tank a day.....WTF?

Easy ... I can do that in Sydney traffic loaded up.
Especially courier work ... on a hot day with A/C blasting.
I have gone through about 80-85L and done about 450-500km for the day.

**Mechan1k** · 13-01-2008, 07:42 PM

Quote:

Originally Posted by LindsayGT

Equivalent petrol performance - yes!

Equivalent consumption - no! At least on my Parnell/Prins VSI kit.
25% worse on LPG around town.
34% worse on LPG on a country run.

And the installers claim it's the best system around!!!!! Technically maybe, in practice, I wonder!

Ahhh ... there's your problem ... it's a Parnell/PRINS system ... have a look in the LPG forum and read Scmidty's LOOOOONG thread on his issues with Parnell ... will put you off them for life.

**Mechan1k** · 13-01-2008, 07:47 PM

Quote:

Originally Posted by DoreSlamR

C'mon considering LPG is currently the cheapest fuel you can buy i find it hard to understand why you wold complain about it. Yeah it sucks that it increases in price, but so does everything else.

From what i understand about LPG it burns up faster than normal unleaded. Maybe, if you use so much in a day you should consider a diesel powered vehicle?

It still works out cheaper to run LPG.

In my line of work ... i get it at whatever price really ... I agree too it sucks that it goes up .... but I still NEED it .. so I just fork over the cash for it.

I'd hate to be running ULP ... my wife pays through the nose to fill the Territory all of the time ... mind you ... she doesn't do as many kays as I do though. I'd be broke if i was running ULP on a day to day basis.

smoo · 13-01-2008, 11:09 PM

In NZ, BP, the theiving bastards have it at $1.25, while Mobil and Caltex are on 1.08. The cheapest is 1.02 at a direct rockgas/agent supplier.
The BP I used to fill up with while doing a 650km trip between Auckland and Wellington has put their price up 28 cents/litre since the new year. I will drive 90km on ULP down the road to Caltex just for the principle to not go to em.

It cost me 70 bucks to fill up, and I get around 430kms to the tank.
What are people getting to the tank (city and highway)on an auto VCT I6 running petrol (guessing 600km?).