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What is LPG?

LPG stands for ‘Liquefied Petroleum Gas’. LPG used by homes and businesses in non-road transport applications is mainly composed of propane which is produced either directly through the processing of crude oil and natural gas, or as a product of the petroleum refining process.


What is LPG used for?

Australians have been using LPG since the 1950s as an efficient fuel for ovens, stoves, hot water systems and space heating.

Today, around one million Australian households use LPG for these purposes.

Another seven million households use LPG for barbeques and outdoor heating.

Around 100,000 Australian businesses use LPG for a range of industrial uses, including heating and power generation.


What are the benefits of using LPG?

LPG is a convenient and efficient fuel for homes and businesses.

Its portability makes LPG a popular fuel in rural and regional Australia, in areas not connected to a natural gas network.

As well as having reliable supply chains for LPG, Australia also has extensive storage and distribution infrastructure. This makes LPG an ideal alternative to foreign oil.

Increasing the use of LPG within Australia will help the country reduce its reliance on imported fuels and improve its fuel security.

LPG is also an environmentally-friendly fuel. Households can more than halve their Green House Gas emissions by using LPG instead of electricity for water heating, cooking or space heating at home.

Around 6.2 million tonnes of CO2 could be saved each year if every Australian home without a natural gas connection, or not using solar or LPG water heating, was to switch their electric hot water system to one powered by LPG.

LPG water heaters are also cheaper to run than electric systems.