which companies deal in auto lpg

The National Party is urging the Federal Government to go even further to encourage alternative fuels.

The Government plans to subsidise LPG conversions by up to $2,000 and encourage solar power, oil exploration and ethanol.

But Nationals Senator Ron Boswell says that is not enough.

"What he's [John Howard] doing with gas is good, but it's only at the margins," Senator Boswell said.

"We really have to get fair dinkum about ethanol and biofuels because we're only playing at the edges at the moment."

He says the Government should push oil companies to buy more ethanol.

Labor also says the Government should go further but its leader, Kim Beazley, has welcomed the first step.

"Any bit helps - I'm glad to see the Prime Minister is finally doing something about it," Mr Beazley said.

The Greens' Kerry Nettle has claimed credit for the idea.

"It's something that the Greens have been calling for for sometime, so it's fantastic to see the Government coming on board with that," Ms Nettle said.

The Government has been under extreme pressure over petrol prices.

Dave R.