Motorists urged to fill up on LPG before price hike

Many fleet managers keen to cut down their car fuel consumption costs may have already switched to LPG as a more affordable and long-term alternative to petrol.

However, the Royal Automobile Association of South Australia (RAA) has issued a warning to motorists that LPG prices are set to spike shortly, and anyone who operates an LPG-fuelled vehicle would be wise to fill up now.

RAA Senior Analyst Chris West explained that after the regional benchmark commodity price for LPG rose by 33 per cent at the start of this month, retailers are set to increase their prices.

"The commodity price rose due to increased demand for LPG globally in preparation for the northern hemisphere winter," Mr West explained in a December 2 statement.

"The commodity price was only set on 1 December and local wholesale prices haven’t changed as yet, but already Adelaide retailers are starting to inflate their LPG prices."

He added that although a number of global factors were behind the rise in the commodity price, Australian producers had the power to dictate the price in the local market. Mr West said this was especially true as most of the country's LPG is sourced locally.

"We are also concerned this new high price will risk damaging the reputation of LPG as a cheaper alternative fuel and potentially reduce the number of motorists who will use it now and into the future," he added.

Whichever type of fuel you use, an outsourced fleet services provider can help you stay on top of your fuel costs. They can carefully analyse your fleet's fuel consumption habits and see whether any changes to vehicle configuration can be made, or alternate fuel sources can be used.