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LPG is a flammable gas produced through crude oil refining and processing natural gas, and is a mixture of propane and butane hydrocarbon gases.1 It’s used primarily in homes and businesses as an energy source for heating, powering hot water systems and cooking food. You can also use it to fuel barbecues, cars and even forklifts.
There are pros and cons to LPG, but many people opt for LPG because it’s clean, cost-effective, efficient and portable compared to other types of gases. While not a renewable energy source and still classed as a fossil fuel, it isn’t as damaging as crude oils like diesel. LPG might also be used if a home or business wants to use gas appliances but isn’t connected to the natural gas mains pipeline.
LPG produces less greenhouse gas emissions than traditional sources of energy, but more than a renewable source like solar. For example, hot water systems produce a lot of carbon dioxide. But, in some cases, using LPG for hot water systems can be a better environmental alternative to electricity, producing up to 15% less greenhouse gas emissions.2
It’s also easy to transport since it’s available for purchase in gas bottles of various sizes.
Propane gas and liquid petroleum gas are fundamentally the same types of gas, although LPG may contain other hydrocarbon gases, such as butane gas.1 When pressurised, both propane gas and LPG liquidise and can be used as a source of fuel or heating. Both are commonly stored in gas cylinders or bottles.
The main difference between LPG and natural gas (which can be a mixture of many different types of gases) is how they’re distributed. Natural gas is accessible through pipelines, and LPG is available via cylinders or gas bottles.3 Even though both LPG and natural gas are used widely across Australia for similar purposes, they’re also made up of different gases. LPG is essentially propane, while natural gas contains mainly methane.4
Where you live in Australia usually determines whether you have access to natural gas. If you require gas as an energy source but can’t access natural gas from the mains supply, you’ll typically need to order LPG. Keep in mind that while many household appliances can use either LPG or natural gas, gas retailers usually won’t let you use both. In these cases, ensure your appliance is fitted with the right connections for the type of gas you’re using.
There are various sizes of LPG gas cylinders available, but the size you’ll require may depend on how you use the gas. Most households will require a 45kg gas bottle at a minimum. However, bigger sizes are available, including 90kg, 190kg or 210kg.
Cylinders over 45kg will need to be filled on-site by professionals or exchanged. Smaller cylinders and gas bottles (like 4kg and 9kg bottles used for barbecues or outdoor heating) can be exchanged.
LPG can have many uses around the home and fuels an array of gas appliances. LPG fuelled appliances may include:
There are several main LPG providers across Australia, including:
There may also be smaller, local suppliers in your area.
Various factors can impact the amount you pay for LPG, so there’s no single answer. As well as differing costs between retailers and gas bottle sizes, you may incur:
You generally have two options for refilling your LPG gas bottles. Suppliers can fill the cylinders on-site via an automatic tanker delivery if you have 90kg bottles (or heavier). They can also arrange a gas bottle exchange if you have 45kg bottles, where empty cylinders are replaced with full ones.
Both options can be organised through your supplier and are designed to keep LPG hooked up to your house. Many households choose to have multiple cylinders installed at one time; you use the other cylinder when one runs out, and the empty one is replaced.
Smaller LPG bottles are usually used for camping, barbeques or small gas heaters. Gas bottles that are 9kg or less can typically be replaced or refilled at most service stations.
You’ll usually need to have your LPG bottles delivered by an authorised supplier. If you’re transporting them in a car, the capacity must not exceed 9kg and there can’t be more than two cylinders at a time. This usually applies to smaller bottles used to power appliances such as barbecues.
As most home gas bottles exceed this weight, you’ll need to organise LPG delivery through an authorised supplier.
Generally, it’s not safe to use an LPG cylinder that’s rusted or damaged in any way. If the LPG cylinder has damage, rust or has been affected by heat, you should discontinue use until professionals can inspect it at a gas cylinder test station.5 If you’re unsure if your LPG cylinder is damaged or need advice, contact your gas retailer for assistance or a replacement gas bottle.
If one of your LPG cylinders is empty, switching to the full one is a straightforward process. Your cylinders will either be equipped with a manual or automatic changeover system. With automatic systems, your gas supply will, as their name suggests, automatically switch from the empty cylinder to the full one.
For manual changeover systems, always refer to your supplier for instructions on how to change bottles and the safety steps to follow. Some gas bottles may have an indicator that notifies you (usually by a colour-coded message on the bottle) when it needs to be replaced.
All LPG cylinders should be stored upright and outside in a ventilated location. The cylinders shouldn’t be exposed to excess heat, as this could cause leaks or explosions. Generally, cylinders are installed in a safely designated location near your home and shouldn’t be moved or tampered with without professional guidance.
Any installations have to be done in line with your state’s regulations, which is why it should only be done by licensed gas fitters.
As the Head of Energy at Compare the Market, Meredith O’Brien believes in educating Australian customers about the everchanging gas and electricity market so they can adjust their energy usage habits and get the most out of their energy plans.
Meredith has six years within the energy industry, following 15 years of experience in financial services and is currently studying a Master of Business Administration. Meredith is a dedicated customer advocate who is passionate about empowering Australians to find the right products to suit their needs by removing the confusion from comparing.
1 Business Queensland – Queensland Government. Gas industry overview. Updated July 2024. Accessed July 2025.
2 Gas Energy Australia. Cleaner, Cheaper Australian Fuels – 2019-20 Pre-Budget Submission. Accessed July 2025.
3 Queensland Government. Compare and choose gas retailers. Updated May 2023. Accessed July 2025.
4 US Energy Information Administration. Natural gas explained. Updated October 2024. Accessed July 2025.
5 South Australian Government. LPG cylinders and fittings. Updated August 2023. Accessed July 2025.