LPG prices in South Africa are likely to remain elevated or potentially increase slightly in the coming months, based on the latest available data and expert commentary.
Key Factors Influencing the Outlook
- Recent Price Movements: In May 2025, the maximum retail price for LPG was increased by 46 cents per kilogram, even as petrol and diesel prices were adjusted downward. This was attributed to higher international shipping (freight) costs for LPG, despite a decrease in global crude oil prices.
- Global Market Dynamics: South Africa’s fuel prices, including LPG, are adjusted monthly and are heavily influenced by international oil prices, the rand-dollar exchange rate, and shipping costs. While crude oil prices have recently declined, LPG prices have not followed the same trend due to specific supply and logistics issues.
- Demand and Infrastructure: Demand for LPG continues to rise as more South Africans seek alternatives to high petrol prices, but infrastructure constraints limit the ability to increase supply quickly, which can keep prices high.
- Expert Commentary: Industry experts note that while petrol and diesel may see some relief due to a stronger rand and lower oil prices, LPG faces unique pressures from freight and import costs, suggesting any price drop will be limited or delayed compared to other fuels.
Summary Table: Recent and Expected Price Movements
| Product | May 2025 Price Change | Key Driver |
| Petrol 93/95 | -22 cents/litre | Lower oil prices, stronger rand |
| Diesel | -41 to -42 cents/litre | Lower oil prices |
| LPG (retail) | +46 cents/kg | Higher freight, import costs |
Conclusion
While petrol and diesel prices may decrease in the short term, LPG prices in South Africa are expected to remain stable or rise slightly over the next few months due to higher international shipping costs and persistent supply constraints, despite some relief in global oil prices. The market remains sensitive to changes in freight rates, the rand-dollar exchange rate, and local infrastructure developments.