Asia LPG Market Brief 20 November 2025

Market snapshot

• The Asia-Pacific region is the powerhouse of global liquefied petroleum gas (LPG) demand. More than one-third of global LPG use is here—led by giants like China and India. 

• In 2023 the Asia-Pacific LPG market generated revenue of about USD 30.93 billion and is forecasted to grow at a CAGR of ~3.1% through to 2030. 

• From 2024 to 2029, market reports point to a slightly stronger CAGR (~3.5%+) in the region, driven by urbanisation, cleaner-fuel shifts and infrastructure build-out. 

Key drivers

• Residential & commercial fuel use: In many Asian countries, LPG remains a primary cooking and heating fuel, particularly in rural and semi-urban zones. 

• Industrial / chemical feedstock: The petrochemical industry in Asia is increasingly using LPG (propane/​butane) as feedstock instead of naphtha or heavier liquids. 

• Clean-fuel transitions: Governments are promoting LPG as a cleaner burning alternative to coal/diesel/biomass in regions of Asia where access to modern fuels is still scaling. 

• Infrastructure & logistics upgrades: Investment in import terminals, storage & distribution (cylinders, bottling plants, autogas infrastructure) supports growth. 

Supply, trade & pricing dynamics

• Asia’s supply side is relatively well-stocked, but margins and flows are sensitive to crude refining output, associated-gas production and global arbitrage. 

• In Q3 2025, data suggested the Asia LPG market saw weakened prices owing to abundant supply and subdued demand (especially in the residential sector during off-season). 

• For 2025, analysts expect Asia’s LPG supply to remain “long” (i.e., plentiful) while downstream demand—especially from petrochemicals—will become the swing factor. 

Challenges & watch-points

• Slow demand growth versus infrastructure expansion: In some markets the pace of demand may lag the expansion of import/storage capacity, putting pressure on margins.

• Competition from alternatives: Natural gas/LNG, renewables and electrification of cooking/heating present medium-term substitution risks.

• Geopolitical & trade risks: Much of Asia’s LPG imports trace back to the Middle East and other regions; supply disruptions or rising freight costs could shake the market. 

• Environmental/Regulatory pressures: While LPG is cleaner than many fossil fuels, it still emits CO₂. The fuel-transition logic may reduce long-term room unless linked to broader decarbonisation strategies.

Outlook & strategy implications

• Expect moderate growth in the near-term in Asia (~3-4% CAGR) rather than explosive expansion—but that still means solid incremental demand for players.

• Growth will skew toward: (a) industrial & chemical feedstock applications, (b) regions still expanding LPG access (rural/semi-urban), (c) markets with strong autogas uptake or dual-fuel systems.

• Businesses in the LPG value-chain should prioritise: enhancing supply-chain flexibility, securing diversified import sources, expanding bottling/distribution infrastructure, and engaging with policy/regulatory shifts (e.g., clean cooking programmes).

• Keep a close eye on the arbitrage between major exporting regions (Middle East, US, Asia) and how freight, refinery output and policy affect landed costs.

• For end-users (industries, utilities, households) LPG remains a viable transitional fuel—but its role beyond that may require integration with lower-carbon solutions (bio-LPG, LPG blended fuels, etc.).