Kathryn Gurney

 Australians struggling under the rising cost of housing, groceries and petrol are starting to look for ways of beating the price hikes and are looking to cheaper alternative fuels, such as Liquified Petroleum Gas, or LPG.

The Federal government looked set to scrap, or half the LPG vehicle rebate scheme, which gives motorists a $2000 rebate on converting an old or new car and $1000 for buying a new car fitted with an LPG system in last week’s razor gang budget; but back flipped and gave the scheme an additional $19.1 million for 2007-08 and an extra $97 million for 2008-09.

With the price of LPG this week – before the weekly Wednesday price hike – of an average 69 cents/litre compared to unleaded petrol at $1.39/litre, LPG is fast becoming an attractive alternative with over 120,000 conversions under the scheme since its introduction in 2006.

Why this new government, shouting from the roof tops its commitment to climate change, would look at axing the scheme is not known, but in this exclusive radio feature Kathryn Gurney looks at why the LPG vehicle scheme should be kept and what the additional government funding will do for the scheme.