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The forecourt price of LPG is typically around half that of petrol and diesel so drivers can significantly reduce their running costs by switching to LPG.
The government promotes LPG as an alternative to petrol through significantly less taxation than petrol and diesel, which means LPG is over 50% cheaper than both. The good news is the taxation level has been fixed for at least the next 3 years and is guaranteed not to rise relatively more than 1p per litre per year. The same cannot be said about petrol or diesel. Cheap LPG is here to stay.
Qualifiying vehicles registered with Transport for London will continue to receive discounts & exemptions from the charge. The charge currently costs £8 per day per vehicle (£10 from Jan 2010) entering the congestion charge zone. For a vehicle entering the zone everyday this could represent an annual saving of over £2000 (£2400 from Jan 2010).
LPG vehicles are eligible for at least a £15 discount off of Graduated Vehicle Excise Duty (Road Tax) as they produce less of the environmentally harmful emissions associated with traditional fuels. For example, a 1.8 Vauxhall Vectra running on LPG would be liable for an annual duty of £115 compared with £150 for the same vehicle running on petrol. The amount that you save depends on the age of the vehicle and the tax banding rated for petrol (g/km).
Some local authorities allow reduced parking rates for LPG vehicles in recognition of their environmental credentials.