Use of Liquefied Petroleum Gas (LPG) has gained momentum in Zimbabwe as an alternative source of energy. The product is widely used by consumers of various backgrounds from industrial, domestic, commercial and farmers.

Liquefied Petroleum Gas (LPG) usage has increased significantly in the past decade. According to National Oil Company of Zimbabwe (NOIC), the use of Liquefied Petroleum Gas (LPG) has increased fiftyfold in the past five years. In 2017, the national LPG consumption stood just at 1million kilograms, but this has increased to 50 million kilograms to date and this is attribute to a deliberate policy thrust to improve supply chains of the commodity including building capacity of infrastructure.

This was largely as a result of the liberalization of the energy sector in the early 2000s and the recorded increase of independent operators joining the supply chain after 2010. Increased awareness and demystification of LPG through extensive training of LPG users by ZERA contributed to increased uptake of LPG in the past decade. Unscheduled power cuts have also results in most households resorting to use LPG. According to ZERA, over 90 independent Power Producers (IPPS) have been licensed as LP gas consumption continues to increase. LPG is a product of the international market. The vagaries of the price fluctuations in the global market affect the price of the domestic LPG because 100% of LPG sold in Zimbabwe are imported from abroad and priced in US dollars. As a result, prices of gas keep soaring at the international market consequential impact on the local market.

The price of liquefied petroleum gas has gone down in US$ terms but remained largely unchanged in local currency following the latest monthly review by the Zimbabwe Energy Regulatory Authority. As Of 7 August 2023, LPG gas is retailing at US$ 1.49 per kg. This represents a decrease from the previously announced rates of US$1.57/kg or ZW$8474.04 on the 7th of July, 2023. According to ZERA, it is permissible for operators to sell LPG at prices below prescribed prices depending on one’s trading advantages.

Opportunities to invest in this environmentally friendly resource are abound in various stages of the supply chain to both interested local and international investors. The sector is still regarded as young in terms of uptake thus presenting opportunities for investors who may set up various infrastructures as importers, wholesaler, retailers or manufacturers and revalidation of cylinders.

ZERA values safe use of LPG in the home and has various awareness and educational programs to ensure zero accidents rate is maintained in the sector. The regulatory has also expressed concern over the use of unsafe gas cylinders and illegal distribution of LPG in the country. For safety reasons, consumers are encouraged to approach licensed LPG wholesalers and retailers. Since 2014, there have been at least 14 accidents involving gas handling errors.