Hello and welcome to the first edition of the MotorMouth Newsletter for 2005.

Over the past few months, we have received a significant amount of feedback requesting information about LPG. Given user interest, we have decided to focus this month’s editorial on LPG.

What is LPG?
LPG stands for Liquefied Petroleum Gas. It is an automotive fuel and it is often referred to as “Autogas”. The main components gases of LPG are propane (C3H8) and butane (C4H10). LPG occurs naturally in crude oil and natural gas production fields and is also produced in the oil refining process.

Why use LPG?
According to the Australian LPG Association (http://www.alpga.asn.au/home/index.asp), changing from petrol or diesel to Autogas could bring with it the following advantages:

• Cost savings - Autogas sells for up to 50% less than other automotive fuels.
• Clean, efficient combustion.
• Amongst the lowest life-cycle greenhouse gas emissions of all commercially available fuels.
• Insignificant levels of sulphur dioxide emissions, the main cause of acid rain.
• Extremely low particulate emissions produced during combustion.
• Less damage to soil and water - in cases of spills.
• It can also help to increase the life of your engine and reduce noise levels (compared with diesel).

Does a National Fuel Quality Standard cover LPG?
A national fuel quality standard for automotive LPG called the Fuel Standard (Autogas) Determination 2003 took effect on 1 March 2004. The Determination outlines the standards and testing methods for Autogas in Australia. To see this document, please go to: http://www.ag.gov.au/portal/govgazonline.nsf/0/0DB540E565153748CA256E05001D2445/$file/S503.pdf. It is interesting to note that the minimum motor octane number set for LPG in Australia is 90.5 (approx 102 RON). While this is the minimum, some retailers may in practice offer a higher-octane product.

Is there a difference between LPG used in a car and LPG used in a barbecue cylinder?
YES. There are two different grades or blends of LPG and they are not interchangeable. One is for automotive use only and will be a mixture of mainly Propane and Butane. The other is Propane, which is required to be used for decanting into small cylinders for caravans, barbecues and camping.

Interesting Facts about LPG
(From the LPG Association website http://www.alpga.asn.au/home/index.asp)

There are more than 3,200 LPG outlets across Australia and LPG is now found at about 40% of service stations.

More than 500,000 Australian motorists run their vehicles on LPG. The traditional market has more than 1 million customers and there are approximately 7 million barbecue and camping cylinders in circulation in Australia.

Automotive LPG - autogas - is recognised as the most important and widely accepted alternative fuel for the automotive sector. It powers almost 10 million vehicles in more than 53 countries.

An alternative to converting an existing vehicle is to buy a factory-fitted or dedicated LPG vehicle. On average, dual fuel factory fitted systems will add an extra $2,500 to the vehicle purchase price. Dedicated LPG adds approximately $1,400 to the vehicle purchase price, but can cost as little as $800.

Retail LPG prices shift in a similar manner to petrol prices, although these price changes are not generally cyclical. Price fluctuations reflect the highly competitive nature of the industry, with retailers discounting products to protect and gain market share at times of low demand.

Australia has five sources of naturally occurring LPG - Bass Strait (1,050 kilotonnes (kt)), Cooper Basin in Central Australia (410 kt), North West Shelf (810 kt), Kwinana in Western Australia (330 kt) and Surat Basin in Queensland (16 kt).

Refinery production is from seven refineries, Bulwer Island (BP) and Lytton (Caltex) in Queensland, Clyde (Shell) and Kurnell (Caltex) in New South Wales, Altona (Exxon Mobil) and Geelong (Shell) in Melbourne and Kwinana (BP) in Western Australia producing 670 kt.

Australia currently produces about 3,300 kt of LPG annually. Of these volumes, 80% is naturally occurring (i.e. extracted from oil and gas production) and 20% is extracted from crude oil in the refining process. Australia’s production of LPG is projected to grow to 5,042 kt by 2020.

The automotive industry uses nearly 65% of the total Australian LPG consumption. Other uses include, recreational (barbecues, caravans, camping stoves, marine), residential (heating and cooking) and commercial/industrial (as a fuel).

With easy access to ample local supplies, Victorians are the largest consumers of LPG accounting for 44% of total national consumption.

What is the Alternative Fuels Conversion Program?
Operators of commercial vehicles and buses weighing 3.5 tonnes or more, may be eligible for assistance for the purchase, conversion, or upgrade of vehicles to operate on autogas under the Alternative Fuels Conversion Program. The aim of the program is to significantly reduce greenhouse gas and other emissions in the transport sector. For more information about the program, contact the Australian Greenhouse Office. http://www.greenhouse.gov.au/transport/alternative_fuel.html.

Administered by the Australian Greenhouse Office, the Program provides up to 50% of the costs of:
- Converting conventionally fuelled vehicles
- Upgrading existing autogas fuel systems
- The difference in purchase price of a new autogas-fuelled vehicle and the price of a conventionally fuelled vehicle.

Where can you find LPG outlets or and LPG installer?
The Australian LPG Association offers a fantastic LPG locator service to help you find your closest LPG provider. They also offer an excellent Trip Finder that helps you locate the LPG outlets from one destination to another.

If you are looking to convert your vehicle to LPG is it important that the LPG system is installed by a business that is approved by or registered with the relevant State Authority, and in accordance with the relevant Australian Standards. The Australian LPG Association also provides a service to find an accredited installer near you.

For more information on all of these services, go to http://www.alpga.asn.au/uses/auto.asp and click on the Outlet and Installers Guide.

Does MotorMouth cover LPG prices?
MotorMouth does monitor LPG prices on the MotorMouth website. However, as MotorMouth’s drivers collect prices from service station price boards, and some service stations do not display their LPG prices, we unfortunately do not provide the same comprehensive coverage for LPG prices as we do for ULP. As more service stations display LPG prices on their price boards, more LPG prices will become available on the MotorMouth website.

We hope this information has been both interesting and helpful. If you have a suggestion for future MotorMouth Newsletter topics, please send them to feedbackmotormouth.com.au.

In other news, we have added a Diesel Fuel Price Leaders section to the MotorMouth Newsletter. This will be a permanent MotorMouth Newsletter feature and is in direct response to your feedback. We have always listed the ULP Fuel Price Leaders in each capital city, but over the past few months we have received many requests for a similar listing for diesel. To find the Diesel Fuel Price Leader in your capital city, click here.

Until next month,

Bernadette Murray
Marketing Manager - MotorMouth
bmurraymotormouth.com.au 

Damien Reid, our guest editor, with more fascinating news on the Fuel and Auto front.
Car Company Rivals Join Forces On New Engine
Proving that there is plenty of life left in the conventional petrol-powered engine amidst a world full of hydrogen, natural gas, electricity and hybrid talk, two of Europe’s biggest car manufacturers, France’s PSA Peugeot Citroen and Germany’s BMW Group have joined forces to develop a super-economical, four-cylinder petrol motor.
[Read more]

Saab Offers Ethanol Option
Swedish luxury car manufacturer Saab has developed an eco-friendly, bio-fuelled version of its 9-5 sedan and wagon capable of running on both petrol and ethanol for sale in Sweden.
[Read more]

New Car Reviews proudly supplied by News Limited.
Smarty Pants
The small car segment is alive with tempting choices, everything from mainstream Japanese and Korean hatch backs through to slick European jobs. Most are relatively large physically, approaching medium car dimensions inside and out. Smart is the latest to join the fray with its five door, four seater forfour, a "small car" in the true sense.
[Read more]

Touareg Expands Options
VOLKSWAGEN Touareg buyers now have the choice of a diesel engine to power the luxury equipped, full-size, German-built four-wheel-drive. And it carries the same $69,900 price as a V6 petrol-engined version.
[Read more]

The average, lowest and the highest ULP prices for last month in each city were:

The ULP price leading service stations for each city last month were:

Brisbane	Service Station Oz Fuel Address Deception Bay Road Suburb Deception Bay Average Price for month 85.9
Sydney	Service Station AP Petroleum Address corner Hume Highway & Orchard Road Suburb Bass Hill Average Price for month 93.1
Melbourne	Service Station Caltex Address corner Somerton Road & Somerton Park Drive Suburb Campbellfield Average Price for month 93.2
Adelaide	Service Station Southern Cross Address corner O.G. Road & Yaralin Avenue Suburb Klemzig Average Price for month 95.2
Perth	Service Station Woolworths Petrol Address 372 Grand Promenade, corner Lowick Road Suburb Daniella Average Price for month 94.3

The average, lowest and the highest Diesel prices for last month in each city were:

The Diesel price leading service stations for each city last month were:

Brisbane	Service Station Oz Fuel Address corner Compton Road & Acacia Road Suburb Woodridge Average Price for month 95.8
Sydney	Service Station Care Wash Address Richmond Road Suburb Clarendon Average Price for month 103.2
Melbourne	Service Station Caltex Address corner Maroondah Hwy & Anderson Street Suburb Lilydale Average Price for month 103.9
Adelaide	Service Station Southern Cross Address corner O.G. Road & Yaralin Avenue Suburb Klemzig Average Price for month 103.4
Perth	Service Station Oasis Address Nicholson Road Suburb Langford Average Price for month 103.5

MotorMouth is committed to helping Australian motorists get a better deal on fuel by providing them with free and easily accessible information on fuel prices.

Reproduction of the whole or part of this email constitutes an infringement of copyright. All information published in this email is intended to be used for your personal use only and can not be used for commercial use without the prior written consent of MotorMouth Pty Ltd. For data sales enquiries please contact salesmotormouth.com.au