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LPG for industry: applications, supply and pricing

How manufacturers, hospitality and commercial users use LPG, how its price is regulated in South Africa and what to consider before switching.

Row of LPG bulk storage vessels at an industrial gas facility

Liquefied petroleum gas (LPG) is a mixture of propane and butane stored as a liquid under pressure. It burns cleanly, delivers high heat and needs no grid connection, which makes it attractive to businesses facing electricity constraints.

Where industry uses LPG

  • Process heat, drying and furnaces in manufacturing
  • Commercial kitchens and hospitality
  • Space and water heating
  • Forklifts and some vehicle applications

How LPG is priced

The Department of Mineral and Petroleum Resources sets a maximum retail price for LPG, adjusted monthly alongside other fuels. In October 2026, LPG prices rose by 42 cents a kilogram. Bulk industrial buyers typically negotiate supply terms within this framework.

Before you switch

  • Bulk tanks must be installed by registered installers and comply with SANS standards.
  • Local authority and fire department approvals are usually required.
  • Assess consumption to size tanks and delivery frequency correctly.

See LPG supply or request a quote.

Published by African Energy Enterprises. This article is general information and does not constitute legal, tax or financial advice. Regulated prices and rules change; confirm current figures with the relevant authority.