Learn more about what makes up your LPG charges, why prices are changing and view our range of tools to support you.

Why are my LPG prices changing?

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.

Mercury buys LPG from our partner OnGas who have faced cost increases in their supply chain which include the increased cost of getting LPG delivered to you.

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.

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.


What’s a Dual Fuel Discount?

If you have electricity and LPG at the same address with Mercury, we give you a daily Dual Fuel Discount. How good is that! If you are eligible for a Dual Fuel Discount, this will show as a credit in the LPG charges section on your monthly bill.

Is New Zealand phasing out LPG?

The Climate Change Commission provided advice to the New Zealand government on the future of gas on New Zealand in 2021. The government has begun work on a plan to phase out fossil gas use, which includes LPG and piped gas.

The gas industry is currently looking into alternative renewable gas options for the future.


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.

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