Queenslanders running their cars on Liquefied Petroleum Gas (LPG) are paying too much, according to the State’s peak motoring body.

An analysis of LPG prices by the RACQ shows that motorists are paying around six cents per litre more than they should be.

RACQ Executive Manager Public Policy, Michael Roth, said retailers had been maintaining unreasonable margins on LPG since early February, failing to pass on a big drop in the international benchmark price.

“Today’s average price of LPG in Brisbane is 68.4 cents per litre, which is far too high. The price should be around 62 cents per litre,” he said.

Australian LPG prices are based on an international benchmark known as the Saudi-Aramco Contract Price for propane and butane, or Saudi CP.

In the last quarter of 2010, the Saudi CP increased to reflect the demand for LPG as a domestic heating fuel in Europe and North America during the Northern Hemisphere winter.

Mr Roth said there was usually a seven-day lag between a change in the Saudi CP price and the cost at the bowser.

“The retail LPG prices rose in December, about a week after an increase in the Saudi CP,” he said

“The Saudi CP fell by around six cents a litre at the start of February, but motorists are yet to see that price drop be passed on to them.

“That translates to thousands of Queensland motorists who are paying highly inflated prices for LPG, which has traditionally been a more economical fuel source.”