Subsidy hits queues for LPG

Andrew Mathieson
Waits for auto gas conversions at local workshops have stretched out to next year in the wake of a $2000 Federal Government subsidy for LPG tanks
One of Geelong’s leading gas converters said the subsidy, announced this week, was several years too late.
Federal Government sweeteners in response to escalating world oil prices include tax-free grants of up to $2000 for conversions and $1000 for ready-made gas cars off the lot.
Autogas Supplies converter David Tangey said this week’s proposal was rushed and displayed a lack of consultation with the industry.
“Three or four years ago we wanted the Government to do this,” he said.
“We applied for it and we didn’t hear from anyone.”
Mr Tangey supported the $1.6 billion package but said keeping up with demand for conversions was harder than ever.
His company was going through the busiest patch in its 20 years.
“I would have liked the Government to give a little bit of notice because it’s bottlenecked the business,” he said.
“We’ve virtually run out of gas tanks already and we’re booked right through to January.”
Automotive Alternative Fuels Registration Board chairman Jim Richards was confident the quality of installations would not drop amid the high demand.
“I wouldn’t say it’s putting (conversions) under pressure but they have only got a capacity to do what they can do,” he said.
Mr Richards quashed fears service stations could raise profit margins on LPG to exploit the outbreak of conversions.
“The industry is competitive and people convert to LPG and diesel for cost and a cost saving,” Mr Richards said.
“The LPG fuel supply industry, with the rebate, has also been given a bonus because the more people who go to gas, the more they sell long-term
“I couldn’t see them cutting off their noses to spite their faces.”