08/02/2012

The State’s peak independent motoring body is warning motorists whose cars take Liquid Petroleum Gas (LPG) to fill up now, with prices soaring this week.

LPG prices rose to a new record in Brisbane overnight, reaching 79.1 cents per litre (cpl).

RACQ’s Executive Manager Public Policy, Michael Roth, said LPG prices had risen substantially.
 
“The price of LPG has increased by 18.8 cpl since the start of the year, reaching 79.1 cpl in the past 24 hours, compared to 60.3 cpl on January 1,” Mr Roth said.

Mr Roth said about a third of retailers were still offering LPG for less than 75 cpl,

“Cheaper LPG is available; motorists just need to find it. They can use the RACQ Cheap Petrol search facility at racq.com to find the outlets with the best prices.”

Historically, the LPG retail price in Brisbane has been about 20 cpl greater than the benchmark price, which accounts for wholesalers’ and retailers’ costs and margins.

“At the current price, LPG is 27.4 cpl greater than the benchmark price. Even taking into account the 2.5 cpl excise which is now charged on LPG, it is excessively high,” Mr Roth said.

“The reason for the increase is linked to a shortage of LPG due to demand for heating fuel in the extreme cold weather being experienced across Europe and Russia.

“By May we expect to see a 10 cpl drop in the price of LPG because, as the northern hemisphere moves in to spring, demand for heating drops,” he said.

For the cheapest fuel prices near you, visit www.racq.com.au/fuelprices.