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The Government’s Position On LPG

"LPG is half the price of petrol. It emits fewer greenhouse gasses and is therefore one of the most environmentally-friendly options currently available. It is a 'win-win' fuel. While helping the environment, motorists will also be saving considerable amounts of money, especially if they travel long distances. That is why I want fleet managers, car hire firms, taxi companies and individual motorists to explore the LPG option."- Energy Minister Brian Wilson, 7th January 2003

The government is clear on its support of LPG, through both financial and non-monetary means.

Primarily, the government endorses the use of LPG through perceived rates of taxation, guaranteed through the 'Alternative Fuels Framework'. The framework sets out:

  • 3-year, rolling programme whereby any change of duty must be announced 3 years before its implementation
  • Guarantee that the current difference in tax between LPG and petrol (the 'duty differential') can change by only 1 penny per year for at least the next 3 years

Essentially, the Alternative Fuels Framework means that the 'half price' nature of LPG is virtually guaranteed for 3 years from every day that there is not an announcement from the government.

As a domestically produced product, the government has and will continue to support the increased use of LPG. It should be noted that the Queen, Prime Minister and Deputy Prime Minister all use LPG fuelled cars.

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