The Bracks Review recommends the Federal Government double the current $1000 rebate paid to motorists who buy new cars factory-fitted with LPG fuel systems, in order to foster the adoption of newer LPG technology by car makers.

The industry’s peak body, LPG Australia, says that the move would be a great encouragement to the local car industry as it increases its support for Australia’s most readily available lower-carbon alternative fuel.

“Ford is currently considering new-generation engine technology for its Falcon E-Gas model and GM Holden has recently indicated it is looking more closely at Autogas-powered models," said the chief executive of LPG Australia, Steve Woodward.

Toyota’s LPG line-up is currently limited to an Autogas-powered version of its HiAce van.

“An increased rebate would be a timely incentive to the three local car-makers to consider inclusion of new generation LPG systems in their product plans,” said Mr Woodward.

A $2,000 rebate for new Autogas vehicles would match that currently available to consumers who convert existing cars to LPG.

“A $2000 rebate would significantly overcome any consumer resistance to buying new LPG Commodores and Falcons – rather than their petrol alternatives – caused by the inherently higher purchase price,” he said.

“It may also encourage consumers to buy larger locally made cars rather than imported vehicles.”

Mr Woodward said the Federal Government’s LPG Vehicle scheme has been an enormous success, with more than 150,000 private motorists claiming rebates to switch to Autogas since in was introduced in August 2006.

“But the figures show that the overwhelming majority of those grants have been $2000 for the conversion of second-hand cars,” he said.

“If the government is serious about encouraging manufacturers and consumers to adopt greener new cars then buyers should be offered the same government rebate as those converting used cars.”

GM Holden recently announced a $1500 reduction to the recommended retail price of all current LPG-powered Commodore models in order to encourage sales.

The Commodores use a dual-fuel system which allows owners to run the car on either Autogas or petrol.

“The LPG industry would like local car-makers to consider the introduction of more LPG models,” said Steve Woodward.

“Ford’s E-Gas Falcon has been a significant sales success because it is inexpensive to purchase, inexpensive to run and offers significant environmental benefits.”

Mr Woodward said Autogas was Australia’s most widely distributed alternative fuel, with pumps at more than half of the country’s 6500 service stations and excellent rural coverage.

“LPG Australia believes introducing a $2000 rebate for new LPG motor vehicles will encourage the development and sale of more LPG- powered models.”