By Duncan Ward, BCA UK Business Development Manager – Commercial Vehicles

'LPG was promoted as an economical way of reducing emissions, with encouragement from the Government by way of tax breaks on the fuel and other concessions such as conversion grants and exemption from congestion charges in London and elsewhere.

In the new market the bulk of demand has come from large utility companies and local authorities, driven by their need to display 'green' credentials. This has meant success for manufacturers such as LDV and Vauxhall with LPG in the new van market. But how do LPG vans fare in the used market?

What is now emerging is a two-tier LPG market, roughly divided between the 3.5 tonne sector and car-derived vans (CDVs), with demand for LPG much stronger in the latter area. This reflects the enduring difference between the car and van market with trends in the CDV sector much more closely mirroring the car sector.

But interesting business users who need a workhorse to reliably and cheaply haul a tonne or more of load around the country is more challenging than turning the small van driver on to the economic benefits of a cheap fuel.

I have personal experience of this kind of inertia. In the late 80s it was very difficult to interest the retail customer in a diesel engine. Happy with petrol, the diesel variant was seen as an unknown quantity.

Converting someone away from the fuel type which gave them the performance and economy they wanted proved difficult until enough people had bought into the diesel market to give it what you might call critical mass. Exactly the same problems now exist for LPG in the 3.5-tonne sector and it is notable that the new Volkswagen Transporter range has led off with four diesel models ranging from 85 to 174 bhp, but no petrol or LPG option so far.

Personal experience of this van – which delivered me 357 miles on half a tank of fuel, albeit unladen – suggests that persuading the vast majority of buyers that there was a better alternative would be challenging indeed.

Researching dealer experience and retail buyer attitudes reveals a perception of LPG which is split by sector.

For larger vehicles the common belief is that LPG will not give the same performance and, with diesel technology offering power and economy undreamed of not so long ago, this is unsurprising.

There are still relatively few large LPG vans in the used marketplace and therefore obtaining truly realistic data on their price performance remains difficult.

However, research does indicate an approximate £1,200-£1,500 difference in diesel's favour.

And the main factor restraining the large van buyers' choice of LPG is the continuing uncertainty in their minds over the durability of the engine. These vans do the highest miles – 150,000 a year is common – and understandably the owner prefers not to be the guinea pig for testing LPG engine reliability. Although probably less of a factor in influencing demand, the issue of where to re-fuel is also more significant to these users too.

The picture changes dramatically in the CDV market. Looking at Astravan, LPG variants fare very well in comparison with diesel, generally remaining within £100-200 of the latter and sitting comfortably above petrol versions.

However, this kind of parity is always likely to be fragile, given the ongoing erosion of tax advantages for LPG and this area of the market should be watched carefully.'