How They’ve Changed Over the Last 10 Years (and What LPG Is Used For)
If you heat your home with bulk LPG (propane), you’ll already know that prices can move around more than mains gas.
That’s because LPG is traded in a different market and is typically influenced by global oil and propane/butane supply, seasonal demand, shipping, storage, and supplier logistics.
What is LPG?
LPG stands for Liquefied Petroleum Gas. In the UK, domestic bulk deliveries are most commonly propane, stored as a liquid in a tank and vaporised for use in your appliances.
LPG is popular in rural and off-grid areas because it provides “mains-gas-style” heating and cooking without a gas pipeline.
What is LPG typically used for?
In UK homes and small businesses, LPG is commonly used for:
- Central heating via an LPG boiler (radiators and hot water)
- Hot water for baths, showers, and taps
- Cooking (hobs, ranges, ovens) and gas fires
- Outdoor living (patio heaters, BBQs) using cylinders
- Caravans and motorhomes (space heating, cooking, refrigeration)
- Small commercial uses such as hospitality kitchens and mobile catering
- Agriculture (grain drying, space heating in outbuildings) where relevant
While many people think of LPG as “just heating fuel”, it’s best viewed as a flexible off-grid energy source that can run most gas appliances you’d use on the mains.
How UK LPG prices have changed over the last 10 years
LPG pricing is not controlled by the Ofgem energy price cap (which applies to mains gas and electricity). Instead, bulk LPG is usually sold on supplier contracts, and prices can change with the wider energy market. Over the last decade, the story has broadly looked like this:
2016–2019: relatively steady with oil-driven movement
During this period, LPG generally tracked broader oil market conditions. You’d typically see modest rises and falls rather than
dramatic spikes, with regional delivery costs and contract terms making a noticeable difference to what households actually paid.
2020: pandemic disruption and softer demand
Global energy demand fell sharply in 2020, which reduced pressure on many fuel prices for a time. For LPG users, this often
translated into a period of less upward price pressure, although local factors (contract timing, delivery schedules,
and supplier pricing models) still mattered.
2021: demand returns and costs begin rising
As economies reopened, global demand rebounded and energy markets tightened. LPG supply chains (shipping and storage) also
became more visible in pricing. Many households saw higher renewal rates compared to the previous year.
2022: energy crisis volatility (biggest “shock” year)
2022 was a standout year for volatility across energy markets. LPG users often experienced sharp increases, particularly where contracts ended during periods of high wholesale prices. This is the period many customers remember as the most painful for renewal quotes and mid-contract adjustments.
2023–2024: easing from peak conditions, but still changeable
Following the extreme market conditions of 2022, prices generally moderated, but they didn’t necessarily return to “old normal”. Winter demand, international supply, and wholesale benchmarks continued to move pricing up and down.
2025–2026: more normalised than the crisis, with ongoing swings
With markets more settled than the 2022 peak, LPG pricing has typically been driven by the usual factors again: crude oil movements, propane/butane benchmarks, winter demand, shipping capacity, and local delivery economics.
The key takeaway: LPG remains a market-priced fuel, so contract timing and supplier competition still matter.
Quick summary: Over the last decade, LPG prices have broadly followed global energy conditions—steady-ish pre-2020, softer during early pandemic disruption, rising with the 2021 rebound, spiking during the 2022 crisis, then easing but remaining variable through 2023–2026.
Why do LPG prices change?
- Oil market linkage: LPG is often influenced by crude oil and refined product pricing dynamics.
- Wholesale propane/butane benchmarks: International contract prices and spot markets affect supplier costs.
- Seasonality: Winter heating demand can push prices up; summer can be cheaper for top-ups.
- Logistics: Delivery distance, driver availability, and storage constraints affect regional pricing.
- Contract structure: Fixed-rate periods, renewal timing, and volume commitments influence your rate.
Practical tips to manage your LPG cost
- Top up outside peak winter demand where possible (many households aim for spring/summer deliveries).
- Check your contract renewal window and request quotes early—timing can matter.
- Compare like-for-like: price per litre, standing/tank charges, minimum order, and delivery fees.
- Improve efficiency: servicing, insulation, smart controls, zoning, and weather compensation.
- Track usage: monitoring tank levels and consumption helps avoid emergency deliveries (often pricier).
FAQs
Is LPG cheaper than mains gas?
Not usually on a unit-cost basis. LPG is often more expensive per kWh than mains gas, but it’s commonly used where mains gas isn’t available. Your total running cost depends heavily on insulation, boiler efficiency, and how the home is heated.
Is LPG covered by the energy price cap?
No—bulk LPG is not covered by the Ofgem price cap for mains gas and electricity. It’s typically supplied under separate contractual terms.
What’s the difference between propane and butane?
Both are forms of LPG. In the UK, propane is most common for bulk domestic tanks because it performs better in colder weather. Butane is often used in cylinders for some applications.
