In some instances, Victorian motorists have already noticed increases of up to 12 cents a litre on the traditionally much cheaper alternative to petrol.
RACV Acting Manager Vehicle Engineering, Nick Platt, said the price of LPG has hit a historic high, due to higher oil prices and a shortage of LPG in the Asian market. Mr Platt said the northern hemisphere winter was also impacting on the LPG price.
“Since October 2011, the LPG regional benchmark price has risen by almost 35 percent. RACV expected that the latest increase would have pushed prices up by four or five cents per litre, not the 12 cents per litre that we are seeing,” Mr Platt said.
“The jump in LPG prices is unexpected and is much higher than the benchmark price. This could catch many motorists unawares. We encourage motorists who use LPG in their vehicles to fill up early to beat the price rise.”
The price of LPG is traditionally more stable than petrol, with LPG pricing pegged to an international benchmark which changes monthly and remains reasonably steady throughout the month.
The last few months has seen LPG price fluctuations become increasingly erratic. RACV has called for an ACCC investigation into LPG price settings, and the unprecedented jump in prices.