How is it that the price of LPG varies when petrol barrel prices go up?

Petrol stations are quick to put the price of LPG up when barrel prices of petrol go up. Recently when petrol went from $1.33 odd to around $1.60 the price of LPG rose from 55 cents to 69 cents, an increase of around 25%. But now that petrol has come back down in price there are only a few service stations that have changed the LPG price back down to 59 cents. Well they can say all they like that there is no price collusion on petrol and when the ACCC investigate the fluctuations stop for a couple of weeks and then they are at it again.

Now to top that off,  the other day around Logan  in Brisbane I filled up with LPG for 61.9cents while the same brand service station on the other side of the road had their LPG advertised at 79.9 cents a liter, this is a whopping 29% difference. If the price of  any other product varied by this much there would be an out cry.

 So my challenge to the Australian government is to regulate LPG to a level that would make it so attractive that more people will convert to the cleaner fuel of LPG.

If LPG was 25 cents per liter wouldn’t you convert your car?

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