There will be a 1100-kilometre gap between Hughenden and Tennant Creek when Mount Isa's only Liquefied Petroleum Gas bowser is removed from Shell Coles Express service station on Grace Street, with Viva Energy stating the costs significantly outweighed the demand.

"The LPG infrastructure at the Mount Isa site is owned and stocked by a third party," the Viva Energy spokesperson said.

"There are significant costs associated with supplying and maintaining the equipment needed to deliver LPG gas, and demand at this site is already so low that sales no longer cover the cost of maintenance.

"For this reason, the company that owns the LPG system has elected to stop maintaining the system and supplying LPG to the area."

Once the tanks run empty, the site will no longer sell LPG and the infrastructure will be removed.

"The decision was made by the company that owns and manages the infrastructure. Viva Energy and Coles Express have reviewed opportunities to continue offering LPG and determined that they are not feasible," the spokesperson said.

"We apologise to LPG customers who are inconvenienced by this decision, and have sought to give customers as much notice as possible."

RACQ Principal Economic and Affordability Specialist Dr Ian Jeffreys said the demand for LPG peaked in 2006 and sales of LPG and vehicles had declined significantly in recent years.

"This trend is likely to continue as car makers are looking at EVs and hybrids as their lower emission options," Dr Jeffreys said.

"As LPG sales volumes fall it is becoming financially unviable for fuel companies to retain LPG. LPG tanks require periodic safety checks and certification, and many sites are deciding to remove their LPG tanks rather than recertify and maintain them.

"Motorists who drive dedicated LPG vehicles should carefully plan their trips if they are leaving the coastal areas of Queensland, as LPG is becoming scarce."

Mount Isa City Councillor for Tourism, Peta MacRae was concerned the impact removing the bowser would have on local motorists and the tourism industry.

"I would be amazed if there isn't a market here for LPG if it is efficient enough to have at Tennant Creek or Hughenden, given that Mount Isa is a much bigger centre," Cr MacRae said.

"There are product lines that businesses don't make money on but there is the expectation that you have it and continue to provide it.

"There would be an expectation from tourists that we would have all forms of fuel or energy for vehicles. Tourists might get caught unaware because it is an expectation that larger centres, like Mount Isa, have services they need."

This is not the first time motorists have been impacted by the lack of LPG in Mount Isa.

South Australian tourists found themselves stranded in Mount Isa in 2018 when there was no LPG available at the Mount Isa Shell bowser.

Anne and Rob Bawden stayed in Mount Isa waiting for the bowser to be fixed, but resulted in them having their Ford Falcon towed to Julia Creek - where the closest LPG bowser was located at the time.

KAP leader and Traeger MP Robbie Katter believes that the removal of the LPG bowser will not only affect locals and tourists needing to restock on LPG, but was also an indication that Australia could be on the verge of a fuel security problem.

"It's definitely a big deal for people on the ground here, but I think the more important question is why is this happening, and I think the why is a lot bigger than just they don't want to supply to Mount Isa," Mr Katter said.

"This little event here of but saying LPG is no longer sold here, putting out that sign, that is now the manifestation of something we've been warning about for 10 years.

"I've been having this discussion about the shortages and lack of security around gas supply for the last 10 years with big, large industrial operators., while the state Labor government that committed to selling off all our gas to large multi national interests when they built the LPG plants in Gladstone.

"Everyone thought it was a wonderful idea and it was a big sugar hit to the economy, but the KAP warned the government on countless occasions, that there will be a large cost from this in the long term to the economy, and that's exactly what we're experiencing now."

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