Study Identifies Key Considerations With Propane For Fleets

A recent study conducted by the Stennis Institute at Mississippi State University found that propane autogas might offer benefits as a fleet fuel versus gasoline and diesel. The study also looked at the challenges fleet managers might encounter when considering autogas.

The examination sought to investigate the viability of the fuel itself relative to gasoline and diesel, the state of refueling infrastructure, the availability of propane vehicles in the market, and other considerations. Among the key benefits that the researchers uncovered was autogas' fuel-cost advantage over petroleum-based fuels - although, like gasoline, diesel, and natural gas, the price of propane varies widely region-to-region and state-to-state. Propane can also be purchased under long-term contracts that provide fleet owners with both bulk-pricing discounts and price stability.

Another important benefit is the greater availability of propane refueling infrastructure relative to other alternatives fuels. Using Mississippi as an example, the researchers noted that there are currently 124 public and two private propane stations in the state, according to the U.S. Department of Energy.

The study also found that even if public propane refueling infrastructure is not available, stations can be built "with a minimal cost, when compared to other fuels." A 2010 report from the DOE, for instance, found that a typical propane refueling station could be developed for $37,000 (500-gallon tank and a single dispenser) to $60,000 (2,000-gallon tank and a single dispenser).

Among the areas where autogas is potentially soft as an alternative to gasoline and diesel is the relative lack of vehicle availability. The study also identifies issues such as vehicle conversion costs, propane-fuel price volatility, and access to autogas refueling vs. gasoline and diesel as areas that fleet managers will need to weight against benefits.

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