Aus:LPG price reaches a new high

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LPG price reaches a new high By GENEVIEVE LALLY 09nov00

MOTORISTS in Melbourne are paying a record-high price for LPG, with the cost of gas set to soar beyond 60c a litre for the first time.

Country motorists are also suffering, with some major centres such as Wodonga and Benalla already charging more than 60c a litre at the pump. The picture is even grimmer across the nation.

LPG was 89.9c a litre in Queenstown, Tasmania, 73.9c a litre in Meekathara, WA, and 71.9c a litre in Alice Springs yesterday.

But more than half of Australia's 550,000 LPG-converted vehicles are registered in Victoria.

Motorists who tried to escape rocketing fuel costs by converting their cars to gas are paying the price.

It now takes three times as long for LPG cars to recoup the $2000 conversion outlay.

And the soaring cost of LPG has sparked anger among taxi drivers who are pushing for a statewide fare rise before they go bust.

A snapshot of LPG prices at Shell service stations across Melbourne yesterday revealed most were charging 59.9c a litre.

RACV government relations manager David Cumming said yesterday's gas prices were a record high for the state.

And he predicted prices would not fall until at least next month.

Australian LPG Association automotive manager Phil Westlake said it used to take motorists 35,000km to recoup the cost of converting a vehicle to LPG.

But motorists now had to drive 100,000km to make it worthwhile.

Mr Westlake said 55,000 to 60,000 vehicles were converted to LPG each year.

And the rate had been climbing by about 7 per cent since the cost of unleaded fuel began to rise.

Shell Australia spokesman Vincent Cosgrove said the GST and international LPG rates had forced prices to rise by more than 200 per cent in the past 18 months.

The fallout could soon hit taxi travellers, with the Victorian Taxi Association pushing for a fare increase to compensate drivers for extra operational costs.

A spokesman for Transport Minister Peter Batchelor yesterday said an agreement on a fare rise had not been reached.

Cab fares across Victoria rose by 8 per cent in July after a 4.6 per cent increase in June.

http://www.heraldsun.com.au/common/story_page/0,4511,1395984%255E2862,00.html

-- Martin Thompson (mthom1927@aol.com), November 09, 2000


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