LPG grant running on empty

The buck stops on July 1 for businesses and individuals wanting the full $2000 grant for converting to Liquid Petroleum Gas.

The fine print of some cuts to the deficit Budget revealed that clean, green alternative fuels are seemingly a little lower on the list, with LPG conversions are one government subsidy that is losing its full bonus. This flies in the face of the Rudd government's Green Car Innovation Fund strategy, which awards carmakers and parts manufacturers on advancements in alternative fuels and petrol consumption.

The grant will be reduced by $250 from July 1 to $1750, and by 2013 it will be half its current bonus at $1000.

In 2008, approximately 125,000 vehicles were converted to run on Autogas. According to LPG Australia, this number reduced the CO2 by more than 100,000 tonnes. Though let's not forget that many LPG cars are taxis, and they travel for a much greater time and distance...

"In the medium term, it is extremely difficult for any other vehicle fuel alternative to match these emissions savings on existing vehicles," said industry development manager Phil Westlake in an official release today.

"This is a blow to the industry and the installers who have invested in LPG."

Happy EOFYS indeed.