The UK has a serious problem caused by the highest LPG (Liquefied Petroleum Gas) prices The LPG price has increased to 91p/litre in late March 2026 and is expected to continue to increase due to the rapid volatility in the geopolitics of the Middle East. The current conflict has caused a 95% reduction in propellant and aber (the two gases that form LPG) deliveries through the Strait of Hormuz. For the 1.7 million gas off generator UK households, rising LPG prices is not a market problem; it is a problem that threatens the embedded security of the household, and it is particularly the case for holders of the big tank fuels in Northern Ireland and the South West where the 3 week delivery delays of LPG are being reported. The problem of delivery commitment has worsened due to a chronic reduction in the refining capacity of domestic sources and the enormous increase in maritime insurance and freight charges.
Primary Factors Behind Supply Issues in 2026
A combination of international disputes and the deterioration of supply lines has created a perfect storm of emerging crises. Disruptions in the Persuan Gulf have caused 20% of the oil and gas liquids to stop being shipped and commercially available, while the UK’s shift in policy to avoid using fossil fuels has resulted in an underinvestment in the old refineries (over 50 years) that are frequently closed for maintenance. In addition, there is a logistical bottleneck, as many of the UK’s LPG reservoirs are located in the Southeast/Northeast. If a refinery is closed, it becomes almost impossible to supply the western region of the country with fuel. Although there are projects, such as the Avonmouth Import Facility that have the potential to resolve some of these problems, they will not be completed for the foreseeable future. As a result, the supply chain will continue to exist at an extreme cost until these projects are completed.
Energy Costs and Market Trends
Examining the last 12 months’ change in prices of competing fuels and LPG will facilitate the understanding of the scale of the problem faced by the end consumers. Fuel Duty has been set at a maximum of 5p in the last 12 months and, while this is in the interest of motorists, LPG users will feel little to no benefit. The table shows the price and market conditions as of March 2026.
| Fuel Type | March 2025 Price | March 2026 Price | Year-on-Year Change | Supply Risk Level |
|---|---|---|---|---|
| LPG (Domestic) | 68p / liter | 91p / liter | +33.8% | High |
| Heating Oil (Kerosene) | 62p / liter | 84p / liter | +35.5% | Medium |
| Road Diesel | 142.4p / liter | 177.7p / liter | +24.8% | Low |
| Unleaded Petrol | 132.8p / liter | 150.1p / liter | +13.0% | Low |
Government Response and Vulnerable Household Support
With costs rising, the UK government has put in place the £52.4 million Crisis and Resilience Fund, which will assist low-income families with off-grid energy bill payments. This fund is more targeted than previous vague subsidies, and focuses instead on vulnerable populations, such as elderly individuals, and those with chronic illnesses requiring consistent heating. Experts in the field note this fund may assist, but it is only a short-term solution to a more significant problem. There is pressure on Ofgem to also regulate LPG and heating oil, as those consumers do not have protective price ceilings like those on the national gas and electricity grids. Without regulation, consumers off the grid are at the mercy of international traders and logistical issues.
Long-Term Outlook and Consumer Adaptation
The LPG market in the UK is expected to remain volatile until global shipping routes stabilize. In the meantime, consumers are encouraged to adopt these steps before the arrival of hybrid heating solutions. The International Energy Agency (IEA) advised households to consider, in quotation marks, “grouping” fuel deliveries with neighbors to circumvent delivery surcharge fees to ensure that tanks are filled to maximum capacity. In addition, consumers are looking more to electric heat pumps and solar-assisted water heating to replace gas cylinders. With the 2026 crisis, consumers are focused on acquiring enough fuel to last through spring. The crisis has introduced a national conversation on energy security and the need for a more robust and diverse energy system that is less exposed and protects rural and off-grid people.
FAQs
Q1 Why is LPG not covered by the Ofgem energy price cap?
Because LPG and heating oil are categorized as “unregulated” fuels, which means they are considered “delivered” fuels in a competitive market, whereas the natural gas grid is a monopoly.
Q2 Can I get financial help if I cannot afford my LPG delivery?
You can apply for the Crisis and Resilience Fund through your local council. Vulnerable households may receive emergency grants to help them avoid self-rationing.
Q3 Will the LPG shortage affect my delivery this month?
Currently, shortages are localized. Although there are national stocks, increased delivery times in rural areas are to be expected. To avoid running out, it is advisable to place an order when your tank is at 25%.
