AAA Welcomes Government Announcement on LPG/Ethanol


The Australian Automobile Association –Australia's peak motoring body – has welcomed measures announced by the Federal Government today to assist motorists in responding to high petrol prices.

AAA Executive Director,Lauchlan McIntosh, said that high petrol prices are hurtingAustralia’s motorists and the measures announced today will help through assisting the introduction of greater competition in the fuel market.

“The initiatives announced today by the Prime Minister will increase competition in the fuel market through making alternatives, such as LPG and ethanol blends, more competitive and attractive to the average consumer,” Mr McIntosh said.

“While we must acknowledge that the world price for oil is a major factor in the local price at the bowser, the AAA is concerned there has been an increase in both the retail and wholesale margins of petrol.  Further research on reserves, alternatives and also storage and distribution technologies is welcomed.”

The AAA also added a note of caution that motorists should carefully consider the long term cost of converting to and using LPG - noting that with the current LPG prices, conversion costs and the used car rebate, motorists will still need to travel 7,000km before breaking even.  If the LPG price rises, this figure will increase.

Mr McIntosh said there were also actions motorists could take to cut down on motoring costs.  This includes shopping round for lowest petrol prices, checking their vehicle’s specifications to find out what fuels can be used safely, ensuring their car is well maintained, planning trips and driving smoothly.

“Motorists should contact their local motoring club if they would like more information on whether their car is suitable to convert to LPG or for other tips to reduce fuel consumption,” Mr McIntosh said.

AAA tracks and publishes average monthly fuel prices at 123 locations around Australia on its website at The data is supplied by independent fuel monitoring company FUELtrac.

Related Documents