In the wake of intensified levels of rolling blackouts, now anticipated to remain at stage 6 indefinitely due to unit breakdowns at various power stations, more consumers are turning to Liquid Petroleum Gas as an energy solution.
LPG outlets say they’re seeing a growing number of consumers looking to purchase the gas for their cooking and water heating solutions, such as gas-powered geysers.
Ryan Hohenstein of High-Speed Gas says the current energy crisis presents a growth opportunity for the LPG industry. He says the sector does, however, have some hurdles to overcome, such as rising cost pressures and a shortage in gas cylinders.
“I mean from 2008, load shedding started [and] the gas industry did grow considerably. With the current load shedding within the last couple of years, the gas industry has expanded hugely, and it’s an opportunity for the industry to grow. In saying this, there’s also talks of gas being subsidised by the government over the last number of years we just haven’t seen this happen,” said Hohenstein.
He added: “A couple of months ago, we experienced the largest per kilogram increase that we just haven’t seen in 20 years, which is around R5,20 something per kg, which to me is unacceptable; it’s going to price the gas out of the market at some point.”
