LPG Gas Powered Vehicles - Today John Howard the Prime Minister of Australia announced that the Australian government would give consumers a $1000 dollar grant when they purchased a factory fitted gas powered vehicle.

The Australian Government will also provide a $2000 grant to the cost of converting cars to LPG gas for private use.

LPG gas conversions have been available for a long time now and LPG is still a cheaper option than petrol.

Ultimately natural gas will continue to rise in price along with oil and other commodities. John Howard said LPG would save about $27 a week or $1400 a year in fuel costs for a six-cylinder vehicle travelling 15,000 kilometres a year.

Projections on future savings are speculative at best. Just like oil, gas reserves are not increasing anywhere near the rate of demand, and new large gas reserves have not been discovered for decades. The Australian Government will also offer up to $20,000 to stations to convert their operations to include E10 - ethanol laced fuel.

In the mean time LPG gas converted cars will quickly pay for themselves if gas prices remain at a similar ratio to oils.