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LPG subsidy announced

THE federal government this week introduced a $2,000 subsidy for motorists to convert their cars to run on LPG and $1,000 on the purchase of new factory-fitted LPG powered vehicles. The government has been considering several options in an attempt to ease the pain at the pump for Australian motorists struggling under high petrol prices. The subsidy could also be extended to include retrofitting LPG tanks to older cars, which currently costs around $3,000. The package could also involve offering incentives to petrol stations to install more LPG tanks to cope with the increased demand.

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