Why are my LPG prices increasing?

LPG is a by-product of natural gas production. New Zealand doesn’t produce enough LPG to meet demand and the remainder is imported. This means we, as a country need to import more LPG to meet demand.

What’s included in my LPG charges?

Your LPG charges are made up of different costs to provide LPG to you. This includes not only our charges, but charges from companies along the supply chain. Here’s some of the costs that make up your LPG charges.

• The cost of the LPG in the bottles.
• Distribution and operational costs – these include getting the LPG, transporting it throughout the country, filling the bottles and delivering to you.
• GST – like most other goods and services, GST is applied to our LPG charges.
• Our retail costs – this covers the costs for everything we need to keep things running smoothly – including billing, administration, business charges and a margin component.
  
  

What is LPG gas?

• LPG stands for Liquefied Petroleum Gas. It is generally a mix of propane and butane, sold as bottled gas. 
• Check out our LPG FAQs for information on ordering and helpful hints.

Where does my LPG come from?

LPG is a by-product of natural gas production and New Zealand produces a lot of its own LPG. Demand for LPG in New Zealand is increasing, but local LPG production is falling. This means we, as a country need to import more LPG to meet demand.

Building? Renovating? Or getting a new appliance? 

You may want to consider energy alternatives to natural gas, like electricity.

Find out more about electrifying your home.

When will I see the new prices on my bill?

If you have electricity and LPG with Mercury at the same address (determined by Electricity and Gas registry data provided to Mercury), we’ll give you a daily Dual Fuel Discount. If you are eligible for a Dual Fuel Discount, this will show as a credit in the LPG charges section on your monthly bill.