20 Nov 2008

AA predicts price of LPG will fall

3:39 pm on 20 November 2008

The Automobile Association predicts the retail price of LPG will plummet like petrol - but it won't happen overnight.

The price of 91 octane is now at $1.48.9 per litre and the association expects it to fall much further.

However, LPG is $1.34.3 per litre, 13 cents more expensive than diesel (currently $1.20.9 per litre).

The association says LPG needs to be at least 40c cheaper than petrol to be economical and the reason it has not yet dropped is because of a "locked" pricing structure.