The popularity of liquefied petroleum gas (LPG) is growing in Europe, as automakers and consumers embrace the fuel as a way of affordably lowering emissions.
While Australia no longer has any new cars powered by ‘autogas’ – despite having several LPG production facilities across the country – sales of the alternative fuel have grown in Europe by 10 per cent in a single year.
According to a report from industry publication Automotive News Europe, nations such as Italy, Spain, and France have lower taxes applied to LPG, encouraging demand in those markets.
Meanwhile, on the supply side, vehicles powered by LPG have allowed car companies to reduce their average fleet CO2 emissions – with the fuel offering up to 20 per cent less pollution than petrol.
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Compared to diesel, the emissions reductions are even more significant.
Preliminary figures compiled by market analysts Dataforce claim almost 350,000 LPG-powered new cars were sold across Europe in 2025 – an increase of 9.8 per cent year-on-year.
Renault and its subsidiary Dacia dominated the market, with a share of 89 per cent of sales, followed by Italy’s DR Automobiles – which mainly sells rebadged Chery Tiggo models – at 6.2 per cent, and Hyundai and Kia collectively taking third with 3.8 per cent.
Dacia alone accounted for roughly 66 per cent of the European market, with the Sandero making up more than half of those sales.
In Dacia’s home country of Romania, sales of LPG cars jumped by 47 per cent, after the brand introduced a new and more powerful 1.2-litre three-cylinder engine and dual-clutch automatic gearbox.
In the Dacia Duster – badged in Australia as a Renault, 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, making up 41 per cent of all purchases of LPG-powered cars – though local demand fell by 2.4 per cent in 2025, believed to be caused by Fiat and Lancia exiting the LPG market.
Typically, autogas in Europe is around 40 to 50 per cent cheaper per litre than petrol – though consumption is typically 20 per cent higher in LPG vehicles due to the fuel’s lower energy density.
Outside of Europe, the alternative fuel has also been gaining momentum.
In South Korea, LPG has become the most popular fuel for fleet buyers of one-tonne trucks, outperforming electric vehicles in the segment.
While Hyundai, Kia, Renault, and KGM (formerly SsangYong) sell brand-new cars with LPG options in South Korea, taxi and retail buyers also have the opportunity to option dual-fuel at dealerships, or have it fitted 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 hybrid powertrain with LPG.
Despite Australia producing its own LPG, the popularity of the fuel has waned following the discontinuation of local new-car manufacturing.
In the 1980s and 1990s, LPG was the fuel of choice for taxicabs across Australia, with Ford and Holden also offering dual-fuel or LPG-only vehicles to new-car buyers.
In recent years, however, the decline of LPG being used by motorists has seen brand-new fuel stations being built without ‘gas’ bowsers, while reports suggest established fuel stations are increasingly having their autogas pumps removed.
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