Choosing between an electric forklift and an LPG forklift is one of the most common equipment decisions Australian businesses face. Both options are widely used across warehousing, manufacturing, construction, and logistics, and both have clear advantages in the right context.
The key mistake many buyers make is assuming the decision comes down to upfront cost alone. In reality, the best choice depends on how and where the forklift will be used, the operating environment, compliance requirements, and long-term running costs.
This guide explains when an electric forklift makes more sense than LPG, and where LPG may still be the better fit.
The Indoor Environment
The most immediate argument for electric forklifts is air quality. While this sounds like an environmental point, in Australia, it is a strictly regulated safety issue.
LPG forklifts are Internal Combustion Engines (ICE). They emit Carbon Monoxide (CO), Nitrogen Oxides (NOx), and particulate matter. In a poorly ventilated Australian warehouse during a humid summer, these gases can accumulate rapidly. SafeWork Australia notes that CO is a silent killer—it’s odourless and colourless, leading to headaches, dizziness, and long-term respiratory issues for staff.
The “Hidden” Cost of LPG Ventilation
If you run LPG indoors, you are often legally required to invest in:
- High-volume extraction fans and ventilation systems.
- Regular emissions testing for the fleet.
- CO monitoring sensors throughout the facility.
Electric forklifts eliminate these requirements entirely. By removing the exhaust pipe, you simplify your WHS compliance and create a cooler, quieter, and significantly healthier workspace.
The Maintenance Gap: Piston vs. Plug
One of the most profound differences lies under the hood. An LPG forklift is a complex machine with hundreds of moving parts—pistons, valves, spark plugs, belts, and a cooling system that is prone to leaking or clogging in dusty environments.
An electric forklift is essentially a battery connected to a motor.
- No Engine Oil: No oil changes, filters, or disposal fees.
- No Transmission Fluid: Fewer hydraulic complexities.
- Regenerative Braking: Most modern electric units use the motor to slow the machine, which drastically reduces wear on brake pads and drums.
According to data shared by Conger, electric forklifts can cost up to 40% less to maintain over their lifetime. For an Australian business running a fleet of five or more machines, these savings in “unplanned downtime” can be the difference between a profitable quarter and a loss.
Total Cost of Ownership (TCO)
The “sticker shock” of an electric forklift is real. Between the battery and the charging station, the initial outlay can be 15% to 30% higher than an LPG equivalent. However, looking at the Total Cost of Ownership (TCO) changes the narrative.
We can calculate the TCO using a simplified model:
TCO = P + I + (O + M) x n
Where:
- P = Purchase Price
- I = Infrastructure (Charging stations vs. LPG Cages)
- O = Annual Operating Cost (Electricity vs. Gas bottles)
- M = Annual Maintenance
- n = Number of years in service
In Australia, the cost of a single LPG cylinder exchange has risen significantly due to fuel excise and transport costs. Conversely, many Australian warehouses are now fitted with solar arrays. Charging a forklift with “free” solar power during the day (or cheap off-peak power at night) creates an energy cost-per-hour that LPG simply cannot match. Most businesses find the “break-even” point occurs between year 3 and year 5.
The Lithium-Ion Game Changer
If you haven’t looked at electric forklifts in the last five years, your perception is likely based on old Lead-Acid technology. Lead-acid batteries were cumbersome—they required “watering” (maintenance), dedicated ventilation rooms for charging (due to gassing), and 8 hours to charge plus 8 hours to cool down.
Lithium-ion (Li-ion) has changed the framework:
- Opportunity Charging: Operators can plug the machine in during a 15-minute coffee break without damaging the battery.
- Zero Maintenance: No watering, no cleaning acid spills.
- Consistent Power: Unlike lead-acid, which slows down as the battery drains, Lithium provides 100% power until it hits zero.
For multi-shift operations in Australia, Lithium-ion has removed the need for “battery swapping” cranes, making electric forklifts viable for 24/7 workflows.
When LPG Still Holds the Crown
Despite the rise of electric, LPG remains a powerhouse for specific Australian applications. It is not about being “old-fashioned”; it’s about matching the tool to the terrain.
The Outdoor & Heavy-Duty Specialist
If your site is an uncovered timber yard in regional Queensland or a construction site in Melbourne, LPG is often the better fit.
- Terrain: LPG machines typically have higher ground clearance and are better suited for uneven surfaces.
- Weather: While electrics are water-resistant, LPG machines are indifferent to a tropical downpour.
- Instant Refuel: If a machine runs out of gas, you swap the bottle in 2 minutes. Even with fast-charging, an electric machine requires a “tethered” window of time.
WorkSafe Tip: If you choose LPG for outdoor use, ensure your LPG cylinder storage is compliant with AS 1596, kept away from ignition sources and building openings.
Infrastructure and Planning
Transitioning to electric requires a mindset shift regarding “fueling.”
- LPG Infrastructure: Requires a secure, outdoor cage for bottle storage and a delivery contract with a gas supplier.
- Electric Infrastructure: Requires an electrician to install dedicated 15-amp or 3-phase outlets. You must also consider the “load” on your building’s switchboard.
For businesses leasing their warehouse, LPG is often chosen because it requires zero permanent modifications to the building. For owner-occupiers, the investment in charging infrastructure is an asset that adds value to the property and pays for itself through lower energy bills.
Operational Noise and Operator Fatigue
In a busy logistics hub, noise is a safety hazard. It masks the sound of reversing beepers and pedestrian warnings. LPG forklifts are significantly louder, contributing to a high-decibel environment that increases operator stress and fatigue over an 8-hour shift.
Electric forklifts are nearly silent. This allows for better verbal communication between ground staff and operators, significantly reducing the risk of “struck-by” incidents.
Making the Switch?
The decision between Electric and LPG isn’t a “one-size-fits-all” answer, but the trend is clear: If your forklift stays under a roof more than 70% of the time, electric is likely your best financial and safety move.
If you are running a single-shift warehouse with an eye on the bottom line, the maintenance savings and fuel stability of an electric fleet are undeniable. However, if your “office” is a gravel yard with 24-hour demands, the LPG workhorse remains a vital tool in the kit.
Not sure which way to lean?
Freedom Forklifts supplies and hires a full range of electric, LPG, and specialised forklifts to Australian businesses. Our team works with you to understand your operating environment, usage requirements, and compliance needs so we can recommend the right equipment or fleet for your operation. Contact us today!
