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Pricing and billing - LPGThe LPG Retail Code covers three different types of sales — pre-paid, payment on delivery and sales on account. It doesn’t cover point of sale transactions, e.g. where barbecue gas is bought from a retail store.
LPG is sold by volume or weight — which may be measured in litres, kilograms or number of cylinders.
An invoice has components for both the gas delivered and a service charge where the cylinders used belong to the company.
The service charge covers costs related to the cylinders, e.g. maintenance and periodic testing and is related to the size of the cylinder. It’s generally less than the cost of the gas that goes into the cylinder.
Pricing for LPG varies monthly in line with the import cost of LPG. Although an LPG business may obtain its gas from either domestic or imported sources, all suppliers charge at the import price, even domestic producers. Seasonal fluctuations in the price according to demand in the Northern Hemisphere mean that LPG is cheaper here in winter than in summer.
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