Month: January 2017

The Return On Investment Of LPG Systems

Published / by Yasmin Nixon

Changes in the energy sector mean that companies with large fleets now have many options when it comes to the direction they take with their fuel. One of the biggest changes in the last ten years is the option of using LPG rather than the conventional petrol or gasoline. While a vehicle running on natural gas is not new, LPGĀ gas conversion Shepparton has not been as fast to pick up as it has in the past ten years. With increase in fuel prices, many looked for cheaper, safer alternatives and so LPG grew to become more conventional. This has led to transport companies considering conversion more seriously than they did in the past decade. Studying transport companies all over the world that have used LPG, a number of issues stick out for those considering the shift.

The biggest initial question for many fleet managers is whether the autogas conversion will be worth it and offer a full list of mechanic services. This calls for a comparison between the cost and the returns the company will get after investing in the conversion. During conversion, the biggest proportion of the cost goes towards the initial installation of the LPG system. There are several steps involved, which change the engine to one that typically only burns fuels in liquid form to one that can accept vapors. Many such conversions turn the vehicle into one that can use both the LPG and petrol fuel systems. The process includes the installation of a new tank, fuel lines, compressors, injectors, vaporizers and control unit.

The initial cost is substantial, but for most companies, what matters most is the bottom line. Thiscalls for an investigation on the return on investment. There are tangible and intangible benefits of gas conversions. An example of intangible benefits is the public image of the transport companies. Clients will want to be associated with a company whose fuel choices leave a kinder impact on the environment. However, it is the tangible benefits that will matter ultimately. While the petrol engine will give more miles per gallon due to the higher energy output, factor in the price of natural gas without taking into consideration the tax reprieves in various states and the transportation company will end up spending much less on the LPG than the gasoline or petrol.

One issue faced by most transportation companies is the issue of storage. If the company is going to use the LPG in a large scale then it is only right that they have a large supply tank in their warehouse or garage. This will feed into the amount spent in the initial expenditure. Transport companies will rest in the knowledge that it is only a one off expenditure, not a recurring one. More importantly, supply companies have deals where they can share the cost of installation or otherwise foot the bill. This is done in exchange for a supply deal with the transport company. All one has to do, then, is to find a reputable fuel supply company. With vehicle manufacturers increasingly improving car air con service Shepparton, the issue of tank space and filling will no longer be an issue.