Diesel vs Gas

The decision to purchase a diesel or gas forklift is an important one and provides a common dilemma for our customers at Centra Forklifts. It is subject to the desired application, the operator’s preferences & priorities, and, importantly, financial considerations.

The following factors should be considered during the decision-making process:

  • Environment – clearly, the gas option provides a cleaner operating environment for your staff. Subject to the site this may, or may not, be a significant factor.

Likely winner – gas

  • Capital value – generally, a gas unit will provide a cheaper wholesale purchase price. This is a function of the complexity of the respective forklifts. This may range in significance from negligible to a 6-8% price difference.

Likely winner – gas

  • Refuelling – consider the time and effort involved in refuelling. Diesel units provide greater ability to monitor fuel levels – thereby minimising out-of-fuel stoppages. Historically, fuel prices have been more stable and may be easier to forecast.

Likely winner – diesel

  • Residual values – if you are renting your forklift you may find that residual values are reduced on a diesel forklift – resulting in an inflated rental rate. This occurs, particularly on smaller units, where the resale market for diesel units is smaller, therefore resulting in a reduced resale price. You, therefore, pay for a greater portion of the capital value in your rental rate.

Likely winner – gas

  • Operating costs – to evaluate the running costs you will need to obtain details on fuel consumption for comparable forklifts. As a rule of thumb the consumption rate for a diesel unit – in litres per hour – is similar to the rate for a gas unit – in kilograms per hour. But the important factor is the price comparison between a litre of diesel and a kilogram of gas. It is likely that you will pay approximately twice the price for gas! This results in direct running costs for gas forklifts being twice as expensive as diesel.

Likely winner – diesel

  • Other factors – consider how equipped the business is to change from diesel to gas, or vice versa. Gas bottles are likely to require a Dangerous Goods store and involve some related compliance costs. There may also be potential for bottle damage – increasing the R&M costs of your forklift. Ongoing rental charges may apply for gas bottles – and generally two bottles will be required per unit to avoid downtime.

Likely winner – diesel

  • Repairs and maintenance – historic repair costs per operating hour vary little across gas and diesel options. There is some evidence that diesel units will produce slightly higher servicing costs, however, the differences are negligible.

Likely winner – too close to call!

So, as evidenced above, there is a good mixture of benefits and costs. The answer for your business depends on the usage rates, whether you intend to rent or purchase, and how you rate the importance of each of the variables above.

If you intend to purchase, then a gas model may provide a cheaper option – but ongoing running costs will be greater. If you intend to rent your forklift. Then, we may quote a cheaper operating rental rate to you. But with a higher servicing component. Ask your supplier for a breakdown of the details. The additional running costs may, or may not, offset this reduced rental rate. Hence, we remember to consider the configuration of your business for handling gas bottles and refuelling.

It is recommended that you prioritise the above factors. This will allow you to assess each factor in order of relative merit for your business. Or ask the experts at Centra Forklifts to evaluate the options for your business.

How can we assist you? Send us your questions