Alternative Fuels LPG Cost

Is LPG cheaper than petrol?

Q: Is LPG cheaper than petrol?

Yes, LPG is typically around half the pump price of petrol at 60–70p per litre versus 140p+ for unleaded. However, LPG's lower energy density means engines use 15–20% more per mile, so real-world savings are around 30–40% per mile rather than 50%. High-mileage drivers can recoup a £1,500–£2,500 conversion cost within 2–3 years.

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Yes, LPG (liquefied petroleum gas) is significantly cheaper per litre than petrol — typically around 60–70p per litre compared to 140p or more for unleaded. However, because LPG has lower energy density than petrol, your engine uses roughly 15–20% more of it per mile, so real-world savings are lower than the headline price difference suggests.

The Raw Price Difference

LPG pump price: LPG typically retails at around 60–70p per litre at UK forecourts, roughly half the cost of standard unleaded petrol. 1

Why LPG is taxed less: LPG carries a lower rate of fuel duty than petrol, which is one of the main reasons it remains significantly cheaper at the pump. 2

Duty freeze uncertainty: LPG's tax advantage is subject to government policy decisions and could narrow in future budgets, particularly as the UK pursues transport decarbonisation targets. 3

The Real-World Cost Per Mile

Lower energy density: LPG contains about 80–85% of the energy of an equivalent volume of petrol, so your engine consumes more LPG per mile than it would petrol.

Typical saving per mile: Despite higher consumption, most LPG drivers still save 30–40% on fuel costs per mile compared to running on petrol — a meaningful saving for high-mileage drivers.

Break-even on conversion: A dual-fuel (bi-fuel) LPG conversion costs roughly £1,500–£2,500. At typical savings, drivers covering 15,000+ miles per year often recoup this within 2–3 years.

Other Factors to Consider

Limited forecourt availability: Only around 1,400 UK forecourts stock LPG, compared to over 8,000 petrol stations — so route planning is essential for LPG drivers. 1

Emissions comparison: LPG produces around 15–20% less CO2 per kilometre than petrol and significantly lower NOx and particulate emissions, making it a cleaner but still fossil-based option. 3

Long-term outlook: With the UK government targeting net-zero transport, LPG is viewed as a transitional fuel rather than a long-term solution, with EVs favoured for future policy support. 4

Is LPG Worth It for You?

Best suited to high mileage drivers: LPG delivers the strongest savings for drivers covering 12,000 miles or more per year — the higher your mileage, the faster you recoup conversion costs.

Check current LPG prices near you: LPG pump prices vary between forecourts, so it pays to know what stations near you are charging before you fill up. 1