Australia's 80c Fuel Exists But Stations Are Disappearing

While Australians pay over $2 per litre for petrol, a locally produced fuel sitting at 80 cents per litre is quietly disappearing from service stations across the country.

LPG, also known as Autogas, once powered hundreds of thousands of Australian vehicles. Today, fewer than 200 stations in New South Wales even offer it, and Western Australia has lost 85% of its LPG pumps in just a decade.

Susanna Doria has run her Sydney automotive business for 40 years, converting petrol cars to run on LPG. She's noticed something interesting lately: her phone is ringing again with conversion inquiries as fuel prices spike and Middle East tensions threaten supply chains.

"It does everything exactly the same," Doria told SBS News about her dual-fuel car. "You wouldn't know except for a button on the dash."

The fuel produces 15% less carbon dioxide than petrol and costs roughly half the price per litre. Sydney's LPG averages $1.13 per litre while Melbourne drivers enjoy 80 cent fills, according to recent pricing data.

Australia produces its own LPG, which means no shipping costs, no import worries, and no reliance on international supply chains during global crises. Professor Hussein Dia from Swinburne University notes this should theoretically make it even cheaper than current prices.

So what happened? The mid-2000s boom fizzled when government subsidies ended in 2011 and a new fuel excise made LPG more expensive. Ford and Holden stopped making LPG vehicles when Australian car manufacturing closed, and electric vehicles arrived as the new alternative.

By 2018, no new LPG cars were sold in Australia. The 51,000 remaining LPG vehicles now face a shrinking network of stations willing to stock the fuel, creating a cycle where fewer cars means fewer pumps, which discourages new conversions.

The Bright Side

The renewed interest in LPG conversions suggests Australians haven't forgotten about this practical alternative. While electric vehicles represent the future for many, LPG offers an immediate solution for drivers seeking locally sourced, lower-emission fuel that costs half what they're paying now.

Doria's message is simple: give consumers choices. "We shouldn't be taking it away. We should be giving them the options for them to decide what fuel they want to run."

With two LPG stations still operating in her suburb, she's keeping the option alive for drivers ready to make the switch.