Why Does LPG Gas Price Change | Fluctuate?
Have you ever wondered why the LPG gas price seems to fluctuate? You’re not alone. The cost of LPG, like many things, is influenced by a number of factors, some global and some local. Hermanus Gas dives into the world of LPG pricing and provides a simple understanding of how it can be connected to petrol prices.
The Link Between Petrol and LPG
One reason LPG prices can change is because they are somewhat dependent on the price of crude oil, which is also used to make petrol. When crude oil prices go up, LPG prices often follow suit. This is because LPG is a byproduct of crude oil refining. So, when the price of crude oil goes up, it can become more expensive to produce LPG.
More Than Just Oil: Other Factors Affecting LPG Price
The cost of getting LPG from the refinery to your home also plays a role in the final price.
This includes:
- Transportation,
- Storage, and
- Distribution.
- If the price of petrol goes up, it can cost more to transport LPG, which can lead to higher prices for consumers.
Beyond oil and transportation costs, there are other global factors that can affect LPG pricing. These include:
- International demand: If demand for LPG is high around the world, it can drive up the price in South Africa as well.
- Geopolitical events: Events like political unrest in oil-producing regions can disrupt supply and cause prices to spike.
Local Regulations and You
The South African government helps regulate LPG pricing to ensure fairness for both consumers and suppliers. Here’s how:
- Maximum Retail Price (MRP): This sets a cap on how much retailers can charge for LPG, helping to keep it affordable.
- Monitoring market trends: The government keeps an eye on international oil prices and production costs to ensure that any price changes are fair and justified.
- For more info – click here [ https://www.energy.gov.za/
files/policies/WORKING_RULES_ 2010.pdf ]
Hermanus Gas: Your Partner in LPG Expertise
At Hermanus Gas, we understand the complexities of the LPG market. We’re here to help you navigate the price fluctuations and make the best choices for your home or business.
- Our technical team is well-versed in the latest market trends and regulations, ensuring you receive both cost-effective and efficient gas solutions tailored to your needs. Contact our technical team today to learn more!
- Don’t forget that with our seamless online or WhatsApp ordering processes, you benefit from free delivery to your door.
Liquefied petroleum gas (LPG) prices in South Africa vary by zone and are regulated monthly by the government based on a formula that includes the Rand/dollar exchange rate.
