Titled:   LPG conversion costs jump as motorists scramble for rebate

The Australian government decided to subsidize LPG conversions for motorists. Hours later, the costs of converting to LPG mysteriously rose almost as much as the subsidy:

The cost of converting a car to LPG soared by hundreds of dollars in just a few hours yesterday as WA motorists rushed to take advantage of windfall government subsidies.

Gas conversion specialists across WA were flooded with inquiries from motorists who were keen to book their cars in and claim the $3000 in State and Federal government payments.

The increased demand drove prices up about $200 to $2800 at most businesses, with the RAC claiming some installers were quoting a staggering $4850.

A survey by The West Australian showed many installers appeared to have simply taken their phones off the hook, while others let them ring out. One installer’s answering machine message told callers he had stopped answering the phone because he could not get any work done.

The RAC was forced to bring in extra staff after a 600 per cent surge in calls to the motoring group’s advice line — which included claims that installers had refused to deal with new inquiries until January.

“We would certainly be watching out for any profiteering that might occur,” RAC manager vehicle policy Mike Upton said. “We wouldn’t want that to happen, there’s no reason for it.

Another example of unintended consequences proving just how bad the idea was in the first place.

Hat-tip to Samizdata