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Chancellor Should Support a Varied Fuel Mix for Transport in Budget

UKLPG, the one voice of the UK LPG industry, will be asking the Chancellor to continue to support the leading alternative transport fuel, LPG autogas, in the forthcoming 2013 Budget by extending the current fuel duty regime beyond 2014. This would send a clear message that the UKs transport sector needs a varied energy mix on the journey to reduce carbon, and that government is supporting all options available to achieve it.

The current duty regime means that drivers save both money at the pump and reduce green house gas emissions. Coupled with the immediate availability of LPG autogas, it is an attractive transition technology and a viable alternative to conventional petrol/diesel cars and vans. Retrofitting to LPG for existing petrol vehicles is relatively straight forward and affordable to consumers.

The supply chain for LPG autogas consists of a broad range of businesses, from large gas suppliers to sole-trading autogas installers. In addition to increased VAT receipts, the Treasury would benefit from a growth in both small and large businesses as a result of increased take up of LPG autogas.

In remote rural parts of Britain, where cars are often the only viable method of transport, conventional fuel prices are considerably higher and LPG, with its lower fuel duty, provides an affordable alternative. Where filling stations are being closed, LPG autogas can fill a gap in the market as it does not require the same infrastructure to supply motorists. Farms, caravan parks and other businesses can supply LPG at the side of the road, using an electronic PIN code system.

Well to wheel analysis demonstrates that an LPG autogas fuelled vehicle generates 14% and 10% lower CO2 emissions than its petrol and diesel run equivalents respectively. The average motorist driving 12,000 miles per year will recoup the initial cost of a conversion after 2 and a half years, at which point they will have saved 1 and a half tonnes of CO2 emissions. Also, It is crucially cleaner burning which helps the UK drive towards improving air quality.

LPG autogas products are available now and are a proven solution to low carbon and clean air driving, both in the UK and across Europe. It is the most widely available alternative fuel in the UK with over 160,000 vehicles served by over 1400 refuelling sites and a national network of vehicle installers. The industry, represented by UKLPG, is worth over £150 million to the UK economy and employs around 900 people.