LPG as Automotive Fuel: Divergent Trends in Europe and Australia

The use of liquefied petroleum gas (LPG) as an automotive fuel is increasing in Europe, driven by its affordability and lower emissions compared to petrol and diesel. Conversely, its popularity has declined in Australia.

Car manufacturers utilize LPG vehicles to reduce their average fleet CO2 emissions, as LPG produces up to 20 percent less pollution than petrol.

European Market Trends

Sales of LPG-powered new cars in Europe increased by 9.8 percent year-on-year in 2025, with nearly 350,000 units sold. This growth is partly due to lower taxes on LPG in countries like Italy, Spain, and France.

LPG in Europe is typically 40 to 50 percent cheaper per litre than petrol, though consumption is approximately 20 percent higher due to lower energy density.

Market Share by Manufacturer

• Renault and its subsidiary Dacia held an 89 percent market share.
• Dacia alone accounted for approximately 66 percent of the European market, with the Sandero model making up over half of its sales.
• Italy's DR Automobiles had a 6.2 percent share.
• Hyundai and Kia collectively held 3.8 percent.

In Romania, Dacia's home country, LPG car sales increased by 47 percent following the introduction of a new 1.2-litre three-cylinder engine and dual-clutch automatic gearbox. A Dacia Duster, for example, offers a claimed combined range of 1500km with LPG.

Italy was the largest market for LPG cars within Europe, accounting for 41 percent of purchases. However, local demand decreased by 2.4 percent in 2025, attributed to Fiat and Lancia exiting the LPG market.

Global Adoption

Beyond Europe, LPG is gaining momentum in other regions:

• South Korea: LPG has become the preferred fuel for one-tonne truck fleet buyers, surpassing electric vehicles. Hyundai, Kia, Renault, and KGM offer new LPG-optioned cars.
• Japan: LPG powers a significant portion of the country's courier and taxi fleets, with vehicles like the Toyota JPN Taxi utilizing a 1.5-litre hybrid powertrain with LPG.

Australian Context

Despite Australia's LPG production capabilities, the fuel's popularity has waned following the cessation of local new-car manufacturing. In previous decades, LPG was common for taxis, and Ford and Holden offered dual-fuel or LPG-only vehicles. In recent years, new fuel stations are being constructed without LPG pumps, and existing pumps are reportedly being removed.