The right forklift fuel type can drastically affect your long-term expenses, environmental impact and operational efficiency. In today’s Australian market, tightening emissions regulations and fluctuating energy prices make it essential for warehouse managers and fleet operators to consider total cost of ownership (TCO) before committing to a purchase or hire. Moreover, evolving technology, especially in electric powertrains, means that old assumptions about diesel, LPG and electric models no longer hold. In this guide, we’ll compare Diesel vs LPG vs Electric Forklifts, with a particular focus on LPG vs Electric Forklifts, examining fuel costs, maintenance, emissions and resale value.
Forklift types explained: Diesel, LPG and electric options
Before diving into costs, it’s important to understand the basic characteristics of each forklift type and evaluating forklift fuel comparison helps to understand the basic attributes of each powertrain.
- Diesel Forklifts: Traditionally favoured for heavy-duty, outdoor applications, diesel models deliver high torque and consistent power, even in harsh conditions. However, they emit significant CO₂ and particulate matter, making compliance with new Australian emissions rules more challenging.
- LPG Forklifts: Running on liquefied petroleum gas, these machines strike a middle ground. They refuel quickly, are relatively affordable, and perform well both indoors (in well-ventilated areas) and outdoors. On the downside, they produce moderate emissions and require regular gas cylinder swaps.
- Electric Forklifts: Powered by battery packs—often lithium-ion—electric forklifts have zero tailpipe emissions, minimal noise and lower running costs. In addition, they excel in indoor environments, as there are no exhaust fumes. The primary considerations are charging infrastructure and battery lifecycle.
When you browse Hyworth’s range, you’ll find everything from compact 1.4 T Walkie Reach Stackers to robust 2.5 T Gas Forklifts and versatile electric counterbalance machines. Whether you plan to buy or hire, our team will guide you to the most suitable model for your workplace.
LPG vs electric forklifts: The fuel cost factor
When comparing LPG vs Electric Forklifts, fuel cost often rises to the top of the list. In Australia, LPG prices can vary significantly due to global oil markets and local supply factors. A standard 9-kg LPG cylinder currently costs around $30–$40 (GST excluded), depending on region. For a typical 2.5 T LPG forklift operating under moderate loads, that equates to roughly $8–$12 per hour. You also need to account for cylinder rental or purchase fees and periodic safety inspections
Conversely, electric forklifts rely on grid electricity, which in commercial settings averages around $0.25 per kilowatt-hour. If an electric forklift draws 20 kWh over an 8-hour shift, the cost of power alone might be in the region of $5–$7. Hyworth’s 1.5 T Lithium Electric Pallet Jack, for instance, uses quick-swap lithium batteries that eliminate lengthy charging downtime, allowing you to keep working without interruption. Over time, the higher upfront cost of lithium batteries is often offset by greater energy efficiency and reduced per-hour charges.
Overall, while LPG may appear cheaper at first glance, the stability and lower per-hour cost of electricity often favour electric forklifts—especially if your site already has a reliable power supply. In short, LPG vs Electric Forklifts fuel expenses will depend on regional energy rates, typical duty cycles and how much you value predictable costs.
Maintenance costs: Keeping your forklift running
A major component of the total cost of ownership is ongoing maintenance. When comparing forklift maintenance costs, you’ll notice stark differences between electric and LPG models.
Electric forklifts boast fewer moving parts—no transmissions, no combustion engines and no exhaust systems. Consequently, they require fewer oil changes, filter replacements and engine tune-ups. However, you must maintain battery health: routine checks on electrolyte levels (for lead-acid), battery cleaning and, eventually, full battery replacements or rebuilds. Lithium-ion batteries reduce this burden with longer cycle life (often 2,000+ cycles versus 500–1,000 cycles for lead-acid), meaning less frequent battery replacement.
LPG engines need regular maintenance every 250–500 hours, including oil changes, spark plug replacement and emission component servicing. In addition, cylinder hoses and regulators must be inspected for leaks. While Hyworth’s service team offers competitive fixed-price servicing plans for LPG units, the cumulative cost of labour and parts can escalate—particularly if you factor in unplanned downtime for engine repairs.
Ultimately, electrical powertrains typically deliver lower maintenance costs over a forklift’s lifecycle. With Hyworth’s full parts and labour warranty and routine service packages, you can minimise unexpected expenses and keep your fleet running smoothly.
Forklift emissions in Australia
Environmental regulations are tightening, making forklift emissions in Australia an urgent consideration. In late 2024, The Guardian reported that efforts to regulate one of Australia’s largest CO₂ sources—transport and machinery—have stalled, despite growing pressure for stricter standards. As a result, many businesses are proactively shifting towards lower-emission machinery.
- Diesel and LPG Emissions
Although diesel forklifts remain popular for outdoor use, their high particulate emissions and CO₂ output are increasingly subject to local council restrictions, especially in metropolitan areas. LPG forklifts burn cleaner than diesel but still produce carbon monoxide and hydrocarbons. Consequently, certain indoor environments—such as food processing plants and cold storage facilities—may ban or limit LPG use. - Electric Forklifts
Electric forklifts offer zero tailpipe emissions, earning them priority access in enclosed and low-emission zones. Moreover, their quiet operation reduces noise pollution and improves operator comfort. As Australia pushes towards net-zero carbon targets, many companies are incentivised to switch to electric fleets, either through government grants or internal sustainability programmes.
Given these trends, electric forklifts not only reduce your carbon footprint but also help ensure compliance with evolving regulations, making them an attractive long-term choice over LPG or diesel.
Resale value and long-term investment return
A forklift’s resale value is an often-overlooked factor in total cost of ownership. LPG forklifts tend to lose value more quickly than electric models because engine wear, replaced spark plugs and emission components reduce appeal to second-hand buyers. After around five years, you might see an LPG machine selling for up to 30 per cent less than its original price.
Electric forklifts—especially those equipped with lithium-ion batteries—typically maintain value better. A well-maintained lithium battery can exceed 2,000 charge cycles, whereas a lead-acid battery might need replacement after 500–1,000 cycles. Because of this longer battery lifespan, used electric forklifts remain in higher demand, particularly among businesses that want to upgrade to zero-emission equipment without paying full new-machine prices.
When you select an electric model from Hyworth, you lower running costs and benefit from a stronger residual value down the line, helping to offset the larger initial investment.
Performance in real-world applications
LPG vs Electric Forklifts must be evaluated based on where and how you will use them. Electric Forklifts are ideal for indoor, high-density storage facilities, such as distribution centres or food warehouses—electric models boast a tight turning radius, minimal noise and zero emissions. For example, Hyworth’s 1.8 T 3 Wheel Electric Counterbalance with Container Mast excels in narrow aisles and high shelving applications, offering quick acceleration and consistent lift speed.
But if your operation encompasses both indoor and outdoor tasks, LPG forklifts offer versatility. They handle rough terrain better than electric models and can refuel in minutes, making them well-suited to construction sites or mixed-use yards. Hyworth’s 2.5 T Gas Forklift with 4.5 m lift delivers robust performance outdoors, plus options such as sideshift and fork positioner attachments for precise load handling.
By understanding your site layout, typical load profiles and duty cycles, you can determine which powertrain will deliver the most reliable performance, ensuring minimal interruptions and maximum productivity.
Who should choose LPG vs electric forklifts?
Deciding between LPG vs Electric Forklifts ultimately depends on your business scenario. Consider the following guidance:
Choose electric if
- You operate primarily indoors (warehouses, manufacturing facilities, cold storage).
- You value zero-emission operation, quieter work environments and lower forklift running costs.
- You have (or can install) reliable charging infrastructure, such as a fast charger for lithium batteries.
- You want to reduce maintenance: fewer moving parts mean lower service intervals.
Choose LPG if
- Your operation mixes indoor and outdoor tasks—such as loading docks, construction sites and storage yards.
- Fast refuelling (cylinder swap) is essential to maintain uptime.
- You need higher lift capacity on uneven surfaces or require heavy-duty lifting.
- You have concerns about upfront cost and prefer a lower initial investment compared to electric.
If you remain uncertain, Hyworth’s forklift consultants can assess your specific needs and recommend the best option. Book a free site inspection today to explore tailored solutions for your business.
The Hyworth advantage: Helping you choose wisely
Hyworth Forklifts’ customer-centric model ensures you get value at every step, whether you’re buying or hiring.
- Wide Product Selection: From compact 1.4 T Walkie Reach Stackers to robust 2.5 T Gas Forklifts and versatile 1.8 T 3 Wheel Electric Counterbalance models, we stock machines engineered for diverse applications.
- Flexible Hire Options: Short-term or long-term hire plans adapt to changing demand, letting you avoid large capital outlays.
- Expert Consultation: Our team will conduct a free site assessment, recommend the optimal powertrain and configure attachments, such as fork positioners or container masts, to match your workflow.
- After-Sales Support: Enjoy fixed-price servicing, genuine parts and a 3-month parts & labour warranty on used units.
Contact us today to discuss your forklift needs and secure the best long-term solution for your operation.
Conclusion
In 2025, choosing between Diesel, LPG and Electric forklifts means weighing fuel price volatility, maintenance demands, emission compliance and resale value. While LPG models deliver outdoor versatility and lower initial cost, electric forklifts often win on predictable running expenses, reduced maintenance and stricter emissions standards.
Ultimately, making an informed decision about LPG vs Electric Forklifts requires analysing your duty cycle, site layout and long-term financial goals. Hyworth Forklifts’ flexible hire and sales programmes, combined with expert guidance, ensure you select the right machine and avoid unforeseen costs. Get in touch today to schedule a no-obligation site visit and see why Hyworth is a trusted forklift partner.
FAQ: Common questions about LPG vs electric forklifts
1. What is the most cost-effective forklift fuel type in Australia?
Electric forklifts often achieve lower total cost of ownership due to stable electricity rates, fewer moving parts and rising demand for zero-emission equipment. However, LPG may remain cheaper if you lack charging infrastructure and need quick refuelling.
2. Are electric forklifts better for indoor use?
Yes. Electric models produce zero tailpipe emissions, reduce noise and minimise heat, making them ideal for indoor warehouses, food storage facilities and pharmaceutical environments.
3. How long do lithium-ion forklift batteries last?
Lithium-ion batteries usually support 2,000+ charge cycles before dropping to 80 per cent capacity. In contrast, lead-acid batteries often require a replacement after 500–1,000 cycles.
4. Are there Australian regulations for forklift emissions?
While standalone forklift regulations vary by state, general emissions standards for industrial equipment are tightening. Many councils now restrict diesel and LPG usage in enclosed areas. Switching to electric helps ensure compliance and future-proofs your fleet.
