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The situation of the LPG industry in the world and in Poland

Date Added: 13-03-2021

Not much is said about the LPG industry apart from the press and industry websites. Most people's knowledge is limited to the fact that LPG is a fuel used to power cars with a gas installation. But how does it look compared to the rest of the world, and what is the share of LPG in the fuel market? We decided to take a closer look at it.

Liquid gas, i.e. LPG in numbers

What can certainly be said about autogas is that it is the fastest growing liquid gas sector. The results may not be impressive, as the global share of LPG in fuel consumption is slightly more than 9%, but in Europe it is already 25%.

This is a very good result, which indicates that autogas is a very popular fuel. What is the reason for the popularity of autogas in the world? First of all, with significantly lower prices compared to gasoline or diesel. However, this is not the case everywhere.

An example is Denmark, which applies a very high excise duty on autogas. It amounts to as much as EUR 500 per ton of this fuel. In practice, this makes the use of LPG unprofitable. The consumption of this fuel in Denmark is therefore marginal.

Gas cars in the world and Europe

Autogas can be used not only as car fuel. It is also used as a fuel in tourist cylinders, in industry, and to power forklifts. When it comes to the use of LPG in cars, cars with a gas installation account for only 3% of all cars in the world. On a global scale, it's really not much. However, already half of these 3% drive in Europe.

The growing awareness that autogas is ecological and wallet-friendly fuel makes many people become convinced of cars with such an installation. Which countries in the world have the most gas-fired cars? It may come as a surprise, but it is Turkey, Poland and South Korea. There is also a systematic number of gas-fired cars in Russia. There, too, the consumption of autogas, which is extremely cheap, is increasing. Interestingly, with the increase in the number of gas-powered cars, the infrastructure for refueling and distributing it does not change. It is so strongly and well developed that it can cope well with the growing demand.

Where the demand for autogas is growing

More and more autogas is used not only in Poland. The situation is similar in Germany and Italy. Every year there are more new cars with factory or dealership gas installation. It is worth bringing Denmark closer again. Due to the aforementioned high excise tax, only a few hundred gas-fired cars are sold there annually.

Prospects for the autogas industry

s the LPG market at risk? So far, there is no indication of this. However, there are disturbing signals that the Polish government is considering increasing the excise tax on autogas. Theoretically, the increase is to be minimal, only by 1 to 2 percent. This means an increase in LPG by an average of 0,05 to 0,07 EUR per liter.

However, when we realize that the price of autogas is about EUR 0,6 per liter, the increase is as high as 10%. It is already impressive. Could this stop the growing popularity of autogas? In our opinion, no. It is still the cheapest fuel available on the market. For a lot of riders, there is no better alternative. It should also be added that LPG is a clean fuel, the exhaust gases of which are free of pollutants found in cars with gasoline and diesel engines.

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