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Frequently Asked Questions About Propane Autogas Pricing

Pricing FAQs

What is the price of the conversion?

As with traditional fuel vehicles, price varies by model and equipment. The GM 6.0L and the ROUSH pickups and vans cost about $10,000 to convert. Bi-fuel aftermarket systems are in the range of $5,000 to $6,500 to install. Blue Bird buses cost about $13,000 more than the base diesel model.

Keep in mind that autogas will more than pay for itself over the expected life of the vehicle through lower fuel costs and a much lower cost of ownership than traditional fuel vehicles.

How much can I save by transitioning to autogas?

Autogas is the only alternative fuel for which there is a legitimate business case. In addition to its federally recognized status as a clean fuel, the vehicle conversions cost less than any other fuel. Propane has an existing fueling infrastructure and new infrastructure is inexpensive. Fleets can expect to pay in the range of $0.40 to $0.60 less than retail gasoline, and the operating cost per mile is calculated by some fleets at five times less for autogas than gasoline. Compared to gasoline, it is the only fuel that saves money for fleets even in the absence of government incentives.

What is the price of autogas?

Autogas fleets can expect to pay in the range of $0.40 to $0.60 less than retail gasoline. You should always follow manufacturer’s recommendation on preventative maintenance, but many propane fleets find they can extend the time between oil changes, thereby further reducing cost. The Texas Department of Transportation calculates their propane fleet cost per mile at .03 cpm and their gasoline fleet at .15 cpm.

What factors affect the price of autogas?

Like other fuel products the price of autogas (propane) fluctuates daily. Generally, as gasoline and diesel prices rise and fall, so does autogas, but autogas traditionally trades at a much lower cost basis than those other fuels. For example, when wholesale gasoline was over $4.00 per gallon, wholesale propane was $1.61 less per gallon. Also, the demand cycle for autogas is opposite of gasoline and diesel. Much of the propane in the U.S. is used during the winter home heating season. This is opposite of the high demand during the summer driving season and it helps reduce massive fluctuations in pricing.

What is the fuel economy on autogas-powered vehicles?

Much the same as with traditional fuel vehicles, fuel efficiency in autogas-powered vehicles varies from model to model, and application to application. As a general statement, dedicated liquid propane injection (LPI) vehicles have about 90% of the fuel efficiency of gasoline models due to the fact that propane has 10% less BTUs than a gallon of gasoline. This compares favorably to other alternative fuels like CNG, which can lower fuel efficiency by almost 70%.

And keep in mind that because the cost of fuel and the operating cost per mile are lower than with gasoline, fleets can often realize significant savings by transitioning to autogas.

Can the autogas fuel dispensers tie into existing fleet/fuel management software?

Yes.

Can I use a fleet card for fueling?

Yes.

How much do autogas fueling stations cost?

FerrellAutogas sells and leases fuel dispensing equipment, with many customers paying an annual lease of only $1.00. On a lease, Ferrellgas assumes responsibility for maintaining all leased equipment. If a customer purchases dispensing equipment, FerrellAutogas will maintain the equipment at the normal hourly labor rate plus the cost of parts.

What tax credits are in place to purchase autogas-powered vehicles and install fueling infrastructure?

There is a complete listing of applicable tax credits available.

How do I apply for these credits?

Your FerrellAutogas Consultant can help you with this question. The IRS website www.irs.gov has additional information.

Can I purchase or lease autogas dispensing equipment?

FerrellAutogas sells and leases fuel dispensing equipment, with many customers paying an annual lease of only $1.00. On a lease, Ferrellgas assumes responsibility for maintaining all leased equipment. If a customer purchases dispensing equipment, FerrellAutogas will maintain the equipment at the normal hourly labor rate plus the cost of parts.

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