LPG is a by-product of natural gas production. 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.

Supplying LPG to you involves different costs. These include not only our costs as a retailer, but also costs from other companies involved in getting the gas to you. Here’s a look at what goes into the charges you pay.

• 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 of everything we need to keep things running smoothly. This includes billing, administration, business charges and a margin component.

Depending on when you receive your monthly bill, you may see your new charges on your first bill after the effective date. As your charges change, you may see two sets of cylinder rental charges: charges at your old price, and charges at your new price. After this, your bill will appear as normal.

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're eligible for a Dual Fuel Discount, this will show as a credit in the LPG charges section on your monthly bill.

Our standard delivery timeframe remains within six business days. Most deliveries are completed much sooner, typically within two to three business days. While the recent price change supports rising operational costs, it doesn’t change the standard delivery timeframe. We’ll continue to do our best to get deliveries to our customers as quickly as possible and remain committed to meeting the six-business-day window.

We recently experienced a delay in charging for some LPG deliveries due to missing information from our supplier. This has now been resolved, and you may see this charge appear one to two months after your delivery, instead of your next bill. Please rest assured that any delayed charges will be billed at the rate that applied at the time of the bottle order, not the future rate.

Check out our FAQs for information on ordering LPG bottles, and helpful hints.