LPG emerged as a retail option in Australia after the 1973 world oil crisis.
The Australian federal government began encouraging the use of autogas in 1981 for reasons of energy security - the country is a major producer and exporter of LPG, derived mainly from natural gas processing - and air quality. The market took off in the 1990s thanks to a combination of a zero tax on autogas and generous subsidies for vehicle conversion.
In 2006, the government stepped up its efforts by offering direct subsidies to owners who installed LPG systems in their vehicles or bought new LPG-fuelled models. Sales of dual-fuel and LPG systems on the aftermarket soared. Ford and Holden offered factory-installed systems on their Falcon and Commodore models until local manufacturing ceased in 2016.
This measure to convert vehicles to use Autogas, introduced under the Howard Government, was withdrawn in 2014 although an excise duty of 2.5 cents per litre (currently 1.36 cents per litre) was introduced as early as 2011 which reduced LPG cost savings for drivers at a time when the fuel efficiency of new petrol and diesel vehicles improved.
This is why Australia has one of the best LPG supply networks in the world, as well as a significant fleet of vehicles.
Australia currently has 2366 refuelling stations offering LPG for sale to the public, spread across the country.