The hidden economics of the world's fourth most popular automotive fuel
In short: Autogas is often sidelined in the conversation about green energy, yet it remains a massive global player. While it captures less than 2% of the total market share, its unique chemical properties and heavy subsidies make it a vital, if complex, tool for reducing emissions and fuel costs.
Autogas, a mixture of propane and butane, is a significant global fuel source that offers distinct environmental advantages over traditional petrol. When burnt, one litre of autogas produces approximately 2 kg of CO2, compared to 2.3 kg from a litre of petrol. Furthermore, it can reduce CO emissions by 30% and NOx emissions by 50%. Despite these benefits, it accounts for less than 2% of the total global passenger car market, with approximately 27.8 million out of 1.47 billion cars currently powered by the fuel.
The adoption of autogas is heavily dictated by regional economics and government policy. In Armenia, it is a primary choice because it costs less than half the price of petrol and about 40% less than diesel. In Belgium, it remains the cheapest car fuel available, priced at roughly one-third the cost of diesel as of June 2019. However, its popularity fluctuates based on incentives; for instance, in Australia, the introduction of a federal excise in 2011 and the cessation of local manufacturing led to a 34.2% drop in LPG/Dual fuel vehicles between 2013 and 2018.
Technological variations also play a role in how the fuel is consumed. While many vehicles use systems that inject autogas as a gas, some high-efficiency models, like those from Holden Special Vehicles, inject it as a liquid. This method allows for increased efficiency and, in some Ford models, produced 3 kW more power than their petrol equivalents. As the world shifts toward hybrid-electric vehicles, the role of autogas is evolving from a primary alternative to a specialized solution for high-consumption fleets, such as taxis and school buses in Canada.
The global landscape of autogas is diverse in terminology and infrastructure. While the UK uses 'autogas' and the Netherlands uses 'LPG', the United States primarily refers to it as 'propane' or 'propane autogas.' Its market dominance is concentrated in specific regions, with Turkey, Russia, South Korea, Poland, and Ukraine accounting for approximately half of all autogas-fuelled passenger vehicles worldwide.
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Sources
- Summary by Intellect · source: Autogas
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