Thursday, December 13, 2018
By Randy Doyle… Most propane marketers believe autogas has significant growth potential. To date, the Propane Education & Research Council (PERC) has spent more than $30 million since 2004 on new autogas technology and currently spends about $2 million annually to develop this market. Yet the propane industry’s adoption of autogas as a fuel for company vehicles remains low. Herein is the hypocrisy. We want fleet owners to use propane instead of gasoline and diesel, but the propane industry’s rate of autogas use is extremely low. 
Why don’t propane marketers use propane in their fleets? What are the barriers? What’s being done to overcome these barriers? What’s the plan for reaching critical mass adoption of by the propane industry? We must answer these questions because there’s little hope of developing the vast autogas market until these questions are answered.
By the Numbers
The autogas market’s gallon growth potential is vast. The fuel represents only 0.1%, one-tenth of 1%, of the U.S. gasoline market, suggesting that we made minimal market inroads. Further, for each 1% of the U.S. gasoline market displaced by autogas, we will add 1.5 billion propane gallons, a 20% growth. The propane growth potential goes up even more if the diesel market is considered.
Surprisingly, autogas is insignificant to propane industry growth and is trending flat. In 2017, autogas gallons represented only 2% of propane industry gallons, up from 1.2% in 2004.
What are the causes of this lackluster performance? Certainly, a major factor is the negative testimonial by the propane marketers who are not using propane in their fleets.
Reasons Propane Marketers Don’t Use Autogas
Faulty technology and installations, not propane the fuel, have eroded the propane marketer’s confidence in propane’s reliability. A reliable fleet, especially in the winter, is foundational to a well-managed propane company. Additionally, the autogas technical service support network is currently underdeveloped. This creates a feeling of vulnerability with the propane marketer. Who wants their nearest autogas technician to be 100 miles away? As a North Carolina propane marketer aptly stated, “The propane marketer feels on their own.” These stories and feelings are told throughout our industry and have created a “you go first” and “let someone else work out the bugs” mindset.
Finally, propane marketers receive conflicting and inaccurate information about autogas’ performance, reliability of bi-fuel systems, and vapor- versus liquid-injection technologies. Who can the propane marketer trust for reliable data and information?
As a result, most propane marketers use gasoline and diesel rather than propane. Their decision is justified.
What Propane Industry Leaders Should Do
Begin by forming a team of passionate autogas experts who are leaders — from PERC, state associations, propane marketers, installers, and equipment distributors charged with increasing autogas adoption by propane marketers. PERC, as the industry’s collaborator, should take the lead. Specifically, this team should:
Randy Doyle is a propane industry veteran with more than 30 years’ experience and a retired Blossman Gas executive. He serves as a PERC councilor and is on the NPGA Board of Directors. He may be contacted at This email address is being protected from spambots. You need JavaScript enabled to view it..
Why don’t propane marketers use propane in their fleets? What are the barriers? What’s being done to overcome these barriers? What’s the plan for reaching critical mass adoption of by the propane industry? We must answer these questions because there’s little hope of developing the vast autogas market until these questions are answered.
By the Numbers
The autogas market’s gallon growth potential is vast. The fuel represents only 0.1%, one-tenth of 1%, of the U.S. gasoline market, suggesting that we made minimal market inroads. Further, for each 1% of the U.S. gasoline market displaced by autogas, we will add 1.5 billion propane gallons, a 20% growth. The propane growth potential goes up even more if the diesel market is considered.
Surprisingly, autogas is insignificant to propane industry growth and is trending flat. In 2017, autogas gallons represented only 2% of propane industry gallons, up from 1.2% in 2004.
What are the causes of this lackluster performance? Certainly, a major factor is the negative testimonial by the propane marketers who are not using propane in their fleets.
Reasons Propane Marketers Don’t Use Autogas
Faulty technology and installations, not propane the fuel, have eroded the propane marketer’s confidence in propane’s reliability. A reliable fleet, especially in the winter, is foundational to a well-managed propane company. Additionally, the autogas technical service support network is currently underdeveloped. This creates a feeling of vulnerability with the propane marketer. Who wants their nearest autogas technician to be 100 miles away? As a North Carolina propane marketer aptly stated, “The propane marketer feels on their own.” These stories and feelings are told throughout our industry and have created a “you go first” and “let someone else work out the bugs” mindset.
Finally, propane marketers receive conflicting and inaccurate information about autogas’ performance, reliability of bi-fuel systems, and vapor- versus liquid-injection technologies. Who can the propane marketer trust for reliable data and information?
As a result, most propane marketers use gasoline and diesel rather than propane. Their decision is justified.
What Propane Industry Leaders Should Do
Begin by forming a team of passionate autogas experts who are leaders — from PERC, state associations, propane marketers, installers, and equipment distributors charged with increasing autogas adoption by propane marketers. PERC, as the industry’s collaborator, should take the lead. Specifically, this team should:
- Be clear that autogas adoption is a priority. At every opportunity, speak about their plan to remove barriers, the benefits of using autogas, and the importance of its adoption.
- Be patient, diligent, and start small on those applications most likely to succeed. The team’s challenge is great.
- Address the complex issues head-on, especially in creating a nationwide service network.
- Synchronize activities at the national level with state association autogas committees.
Randy Doyle is a propane industry veteran with more than 30 years’ experience and a retired Blossman Gas executive. He serves as a PERC councilor and is on the NPGA Board of Directors. He may be contacted at This email address is being protected from spambots. You need JavaScript enabled to view it..
