Why does LPG cost more outside the cities?
This is a complex issue, which is affected by a number of factors. Firstly, additional costs are added to the price for transporting product from coastal terminals to inland outlets in regional areas. Compounding this transport cost is the fact that smaller volumes are transported to regional areas less frequently than in metro areas, (or even compared with petrol tanker deliveries to regional areas) so a higher premium is charged for the service, which is reflected in the price per litre. This transport premium could be as much as five times the amount to transport the same volume of petrol to the same regional outlet, as five times as much petrol is consumed in remote areas as LPG. Further information is found in our pricing facts section.
