The popularity of liquefied petroleum gas (LPG) is increasing in Europe as car manufacturers and consumers use the fuel as a way to cost-effectively reduce emissions.
While there are no new cars running on “autogas” in Australia despite several LPG production plants across the country, sales of the alternative fuel in Europe have increased by 10 percent within a year.
According to a report by an industry publication Automotive News Europe, Countries such as Italy, Spain and France impose lower taxes on LPG, driving demand in these markets.
On the supply side, LPG-powered car manufacturers have now helped reduce the average CO2 emissions of their fleet – with the fuel producing up to 20 percent fewer pollutants than petrol.
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Compared to diesel, the emission reductions are even more significant.
Preliminary figures from market analyst Dataforce assume that almost 350,000 new LPG-powered cars were sold across Europe in 2025 – an increase of 9.8 percent compared to the previous year.
Renault and its subsidiary Dacia dominated the market with an 89 percent share of sales, followed by Italy’s DR Automobiles – which mainly sells rebranded Chery Tiggo models – with 6.2 percent, and Hyundai and Kia together tied for third place with 3.8 percent.
Dacia alone accounted for around 66 percent of the European market, with the Sandero accounting for more than half of those sales.
In Dacia’s home country of Romania, sales of LPG cars rose 47 percent after the brand introduced a new and more powerful 1.2-liter three-cylinder engine and a dual-clutch automatic transmission.
In the Dacia Duster – badged as Renault in Australia but not available with LPG – the vehicle has a claimed combined range of 1500km.
The largest group of buyers in the bloc came from Italy, accounting for 41 percent of all purchases of LPG-powered cars – although local demand fell by 2.4 percent in 2025, presumably due to the exit of Fiat and Lancia from the LPG market.
Typically, autogas in Europe is around 40 to 50 percent cheaper per liter than gasoline – although consumption for LPG vehicles is typically 20 percent higher due to the lower energy density of the fuel.
Alternative fuels are also gaining in importance outside of Europe.
In South Korea, LPG has become the most popular fuel for fleet buyers of one-ton trucks, surpassing electric vehicles in the segment.
While Hyundai, Kia, Renault and KGM (formerly SsangYong) sell brand new cars with an LPG option in South Korea, taxi and retail buyers also have the option of purchasing dual fuel from dealers as an option or having it installed by a specialist.
In Japan, LPG powers much of the country’s courier and taxi fleet, with the purpose-built Toyota JPN Taxi using a 1.5-litre LPG hybrid powertrain.
Although Australia produces its own LPG, the popularity of the fuel has declined following the cessation of local new car production.
In the 1980s and 1990s, LPG was the fuel of choice for taxis across Australia, with Ford and Holden also offering dual-fuel or all-LPG vehicles to new car buyers.
However, in recent years the decline in LPG use by motorists has led to brand new petrol stations being built without ‘gas’ pumps, while reports suggest that established petrol stations are increasingly removing their LPG pumps.
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