Australian LPG Pricing Explained

LPG Price Australia. Learn about Australia LPG prices…

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Australian LPG Gas Price Explained

There are many factors that go into determining the price of LPG. 

These all fluctuate over time. 

We constantly review all of these factors to make sure that we have competitive prices.

The following should help explain all of these factors…

LPG Gas Price - World LPG Benchmark Pricing

LPG tankerAustralian LPG prices reflect the fact that LPG is an internationally traded commodity and influenced by international prices.  

The international benchmark for the cost of Australian LPG is the Saudi Aramco Contract Price, also commonly called the Saudi CP.

The Saudi CP changes on a monthly basis, forcing price reviews at least once per month.

All internationally traded commodities are subject to price fluctuations.  

Agricultural and natural resource products are similar to LPG, in that they are subject to the prevailing price in international commodity markets. 

Australia does not have an influence on LPG price benchmarks, as our production of LPG is small compared to worldwide production. 

The same is true for the Australian pricing of crude oil and refined products, which are also linked to international prices.

Exchange Rates

The Saudi CP is expressed in US dollars per tonne.  

As the international price for LPG is in US dollars, the Australian dollar exchange rate also affects the Australian price of LPG.

Exchange rates change numerous times per day, making the setting and publishing of prices even more challenging.

LPG Transportation Costs

B-double LPG road tankerThere are over 15,000 named locaties in Australia, from small towns and villages to large cities.

All of these localities are different distances from their closest delivery depots which, in turn, are different distances from their supply terminals.

Each has a specific cost of delivery and this complexity is one of the reasons why it is difficult to publish pricing for all areas.

For example, if you live 1km from a depot the cost of delivery would be much different than if you lived 50km away.

Transport costs and refinery terminal fees are also a significant part of the overall cost of delivered LPG.

Australian LPG is sourced from oil & gas fields, refineries and importers. 

As these can vary across the different geographical locations of Australia, LPG pricing can also vary by location and distance from the source.  

There are three distance related transportation cost variables:

  1. Distance from original source to the main terminal

  2. Distance from the main terminal to the various local depots

  3. Distance from the local depot to your location

Volume Used

The cost of servicing a larger volume account is typically less than a lower volume account.

Delivering larger quantities, on a given delivery, is obviously more economical.

There are also equipment costs, account administration costs and other costs & considerations that, when spread across more volume, will affect the price.

As an example, autogas dealers take thousands of litres per delivery, as compared to cooking only customers who might use just one gas bottle every 15 months.

As a result, the volume used affects the unit pricing.


The seasons can also affect LPG costs, as the worldwide demand is generally higher during the northern hemisphere winter. 

In general, higher demand results in tightening of supplies and an increase in prices.


The government affects the price you pay for LPG through the application of taxes. 

GST applies to all LPG sold in Australia. 

This adds 10% to the price of the LPG.

In addition, LPG used for vehicles – autogas – is also subject to an excise tax. 

Excise tax on LPG started in 2011 and has been increased every year since. 

It is currently 12.5 cents per litre.

Geo-Political Issues and Supply Interruptions

Embargos, wars and social unrest in LPG producing countries can adversely affect supply and drive prices upward. 

Natural disasters, like earthquakes and fires, can also have an effect.

LPG Price Australia

While Elgas is the largest marketer of LPG in Australia, we are also dependent on the primary LPG producers for the product and are subject to changes in the international price, taxes, transport and other related costs and considerations. 

The variations in world benchmark pricing, exchange rates, transportation and delivery costs, as well as the variations in the volume used, make it impractical to publish pricing for all customers in all 15,000 Australian localities.  However, you can contact us and we would be happy to provide you with very competitive pricing applicable to your unique situation.

You can Save Money, Water & Energy

With very little effort or investment you could be saving money on hot water running costs, water usage & the cost of a replacement hot water system. 
So, how do you do it?
The use of WELS showerheads and taps is the answer.  
WELS is Australia’s Water Efficiency Labelling and Standards scheme.  
The scheme helps consumers make informed decisions, when buying water-using products, to help them save water and money.

Saving Water with WELS Showerheads

How to Save Money, Water & EnergyShowers use the most hot water in a home, so the quickest way to save water in your home is to switch to water efficient showerheads.  
A standard showerhead uses about 15 to 25 litres of water per minute, while a WELS 3 Star rated water efficient showerhead uses a maximum of 9L/min and as little as 6 or 7L/min.  
So, assuming an 8 minute shower, a standard showerhead uses 120 to 200 litres of water whereas a water efficient model uses between 48 and 72 litres, or 40 to 75% per cent less water. 
Your family’s annual water savings can be as much as 44,000 to 63,000 litres*.

Saving Energy and Money with WELS Showerheads

People generally shower for 5 to 10 minutes.  
Assuming you have a 3 Star shower head and you mix in some cold water with the hot, the typical hot water consumption would probably be in the 7L/min range.  
If you also assume an 8 minute shower, you will consume about 56 litres of hot water per shower or a family of four would consume 224 litres versus.  
That same family would use as much as 640 litres of hot water with a standard showerhead, assuming 20L/min consumption. 
The use of WELS 3 star rated showerheads is an important factor in saving energy, as hot water typically accounts for about 25% of the average home energy costs.  
Your actual savings depend on the type, size and energy efficiency rating of the hot water system you currently own.
You can also save money on the purchase price of a new hot water system, as the WELS showerheads help reduce the size and cost of the hot water system required.  
If you also choose a 5 Star or better hot water systems, you will further minimise your hot water energy costs

Saving with WELS Taps

You can also save money, energy and water by using more efficient tap fixtures.  
Before purchasing a new tap, check the WELS star rating.  
The higher the rating, the more efficient the model. 
Your family's annual water savings could be as much as 25,000 to 35,000 litres.  
The range is based on a comparison between 0 Star (16L/min), 3 Star (8.25L/min), 4 Star (6.75L/min) and 5 Star (5.25L/min) kitchen or bathroom taps.
Once again, you can save energy and money, too. Annual energy savings can be up to $297 per year*.  
To save even more, make sure you fix all leaks and avoid unnecessarily running taps when washing, shaving or brushing your teeth.

More About WELS

This joint government and industry program is designed to help consumers compare water efficiency when buying water-using products. 
Products covered under the scheme include clothes washing machines, dishwashers, showerheads, toilets, urinals and taps, with flow controllers optional.  
WELS products are rated and labelled according the requirements of the Australian Standard AS/NZS6400:2005 - Water Efficient Products Rating & Labelling.
For more information on the WELS scheme and to view the full list of water rated products, go to
Some state governments, local councils and water utilities offer rebates or other incentives for water efficient products.  
To find out more, visit


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