LPG 20% price rise. That hurts ...

[twisty]

Had trouble finding somewhere with lpg yesterday and the one mob that did wanted 93c/l (normally 78). Pulled in at my local this morning and, bugga me, 93! 20% rise overnight. Asked the checkout chap and, of course, he had no idea.

The local rag has just posted an article saying the lpg is running out as a company's tankers are having problems with lpg delivery. Petrol is okay.

But, 20%? Over night? gawd! Someone's making some nice drinking silver ....

 

[Campin40]

Yep, same up here on the central coast. Went from 78 to 96 cents per litre over night. Still cheaper than running a petrol, or large diesel 4wd for that matter.

 

[Flash_dg]

Noticed that my local hasn't been advertising LPG for a fer days either

 

[frosty]

Yep, same up here on the central coast. Went from 78 to 96 cents per litre over night. Still cheaper than running a petrol, or large diesel 4wd for that matter.

I'de doubt that. Already paid for systems, maybe? But it's no longer viable to fit gas. It's a shame really.

 

[80lover96gxl]

96 c per ltr down here in SA.
May aswell rip the lpg system out and put another petty tank back in.
Considering the milage you get from lpg its hardly worth having these day's.

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[Kevs GU]

Lpg

93 cents/litre is a complete ripoff they cannot justify the increase. The only ones who benefit are the CEOs of the oil companies.

 

[Campin40]

I'de doubt that. Already paid for systems, maybe? But it's no longer viable to fit gas. It's a shame really.

Yes ,the system was already installed in the car so lucky for me I guess.

I actually worked out my mileage and consumption last week because of the current price of gas.
This is how it stands for me,

105 4.5 landcruiser
LPG
usable liters - 90
Km on 90 liters - 400
Liters per 100 - 22.5
Cost to travel 1000 Kim's @ 80c p/l - $180

PETROL
usable liters - 90 ( main tank only)
Kim's on 90 liters - 500
Liters per 100kms - 18
Cost to travel 1000 ks @ $1.60 p/l - $288

Still way cheaper, but for how long I wonder.

 

[Campin40]

Forgot to mention that those figures are for highway and not towing anything.

 

[profoto]

When I had the 80 I found towing didn't make a lot of difference to economy but the heads didn't like it and I burned out a few valves at about $2k+ a time.
Girlchild has inherited the car and it has an oil injection system for upper cylinder lube but I don't know how much difference it will make.

 

[Freedomseka]

I don't think that economy is what is at stake here.

The issue is the massive rise in price over a short period of time.

I run my own business and there is no way that I could get away with raising my prices the same way. Plus there really hasn't been any explanation for it which is what I would have to do before raising my prices.

Shane

 

[80lover96gxl]

I read on another forum that before too long lpg will be the same price as ulp, the way prices are increasing im starting to believe it.

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[smitty_r51]

we have $1.00 for gas down in the sticks

and noticed diesel has jumped 10c a litre in a week...funnily just as they announced that the supermarkets can no longer offer fuel discounts over 4c a litre...

 

[Outrage]

Yeah, gas went up a few days ago in Vic, paid 69.9c on Monday. I noticed on the way home the fuel in Trafalgar was 98c, thought "what the hell?!?!". Got to the suburbs and it was 90c there!

For you petrol/diesel guys, it's equivalent to that jumping 40c!

Luckily on Wednesday I found the Shell in Trafalgar had dropped to 76.5c, the two neigbouring servos were still 90-95c.

In the 4wd today for O'Tooles Xmas Drinks, reached Trafalgar, damn, the Shell put it's price back up

Switched to petrol for now...

For my falcon's economy, gas needs to be $1.10 to equal petrol at $1.50, the Patrol's ratio is a bit more lenient to gas, but not much more. Systems were on the cars when I bought them, would never install gas on a new car if it didn't already have it.

 

[craigo_s]

It's pretty common for the price to go up at this time of year, it's all about supply Vs demand, have to remember that with America and Europe heading into winter and the majority being heated by LPG that there is a massive demand for the stuff and it's folks like us that have to just put up with it, sucks balls really...


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[Freedomseka]

Got this from the NRMA website

NRMA urges oil companies to keep LPG prices in check


Author: Peter KhouryDate: 11 December 2013

Motorists are now feeling the impact of the dramatic 18.3 cent increase in the international contract price for LPG in December, with prices in Sydney today surpassing an average of 93 cents per litre.

The retail price of LPG rose from 78.2 cents per litre last Thursday to 93 cents per litre today.

The 18 cent jump in contract price (inclusive of GST) was the highest on record and double the previous high of 9 cents per litre in August 2012.

NRMA Motoring & Services spokesperson Peter Khoury said oil companies had enough room between the contract and pump price to not pass on the full 18 cent rise in the December LPG price.

"Around 80 per cent of our stock is sourced locally and Australia is not subject to the high demands for LPG currently being seen in the Northern Hemisphere and Asia," Mr Khoury said.

"It's for this reason the NRMA is calling on Australian oil companies to show restraint with price movements in the lead-up to Christmas."

"We would like to see prices under 90 cents per litre on average in Sydney and believe there is enough margin in the market for this to happen.

"Motorists can still find LPG as low as 81.9 cents per litre in Sydney today and should shop around or use the NRMA's fuel search website to locate the cheapest LPG in their area.

"The message for motorists with LPG vehicles is to shop around and fill up now."

 

[LowLux]

1. Get ready for a permanent, huge, LPG price rise. The governement has stopped subsidising installation of LPG tanks on vehicles, got rid of subsidies on the price of LPG and now also the policy which says that LPG will never be anymore than half the price of petrol.

2. The government was going to subsidise household water tanks too then - after a few years, tax you on usage from those tanks via water meters.

3. Just waiting now for....the governement subsidised solar panels, they're currently reducing the feed in tarriff bit by bit, soon it will be rid of it altogether and those people putting back into the grid will eventually be taxed because it is considered an income.

Just what I've heard anyways but in saying that, the way things are going, I don't doubt it.

 

[nightscale]

Welcome to the screw the poor to feed the richm im wsiting for petrol and fines to go up again

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[Cavsarge]

I am on diesel but listening to the radio this morning on the way to work I heard that we sell LPG to China by the boatload for between 6-13 cents per litre!

 

[millsy]

Got this from the NRMA website


"We would like to see prices under 90 cents per litre on average in Sydney and believe there is enough margin in the market for this to happen.

"Motorists can still find LPG as low as 81.9 cents per litre in Sydney today and should shop around or use the NRMA's fuel search website to locate the cheapest LPG in their area.

"The message for motorists with LPG vehicles is to shop around and fill up now."

Well I did a bit of shopping around last week on a trip to Perth. They are right, it really is worth shopping around!

I found the cheapest LPG was in Ceduna! Even cheaper than Adelaide prices! That makes sense - NOT!! Maybe they have there own LPG refinery way out there.

I think there is a bit of profiteering going on by the oil companies at the moment.

Last week I did a quick trip to Perth. So after reading some of these posts tonight I set up a spreadsheet to see how much I saved by running on LPG for most of the trip. In the 'good old days', just a few years ago, the % saving would have been much greater. But $222 is better than nothing I suppose.

I think that once this profiteering cycle is over then the savings to be had in every day city driving will be a lot better than what was achieved on this interstate trip at today's 'pumped up' prices. (No pun intended)

As you can see, if the Adelaide LPG prices come back to a more normal 80cents/litre after Xmas, then the percentage savings go up from 24% on this trip last week, to around 38% for normal every day city driving. And that is for a Commodore. If your daily drive is a big heavy 4x4, then although the % savings will be about the same I suppose, in dollars you would save more than if your were driving a more fuel efficient vehicle.

Question is - will the prices come down. They did about 9 months ago when we were panicking. Or was it a year ago? Let's hope they do it again. As I said, a few years ago I was regularly saving 50% of the cost of running on petrol. Oh well, we are still saving I suppose. And 38% is pretty good really. If you could save 38% on your weekly grocery bill, or any other largish living costs, electricity or water costs say, you would be pretty happy. So no need to ditch your LPG equipment just yet.