Australia’s LPG outlook for 2026: Five energy and gas trends to watch

For Supagas, one of Australia’s leading LPG suppliers, the story of 2026 won’t be driven by any one policy change. Instead, it reflects the combined effect of regulatory updates, shifting market conditions and day-to-day customer realities – particularly across regional communities. Paul Gordon, National Compliance Manager at Supagas, says these signals are now clearly coming through from government, industry and customers on the ground.

“There’s a lot happening at once,” Gordon says. “We’re seeing policy evolve, networks change and customer expectations rise. The common thread is that people want energy solutions that are practical, dependable and suited to their circumstances – not one-size-fits-all answers.”

With that context in mind, Supagas has identified five key trends likely to shape the LPG and wider gas landscape across 2026.

1. LPG’s role is strengthening as a transition fuel

As governments and planners test the pace and practicality of electrification, LPG continues to gain recognition as a complementary fuel that supports energy security – especially where reach and reliability are essential. The Australian Government’s Future Gas Strategy indicates that even under net-zero projections, gas will still be needed through to at least 2050 to help maintain system reliability and firm renewable generation.

“Electrification relies heavily on transmission lines, and it’s extremely expensive to extend that infrastructure into remote or regional locations,” Gordon says. “By comparison, LPG already has a distribution model that reaches those customers. Our cylinder delivery vehicles and bulk tankers rely on the road network that’s already there, so you can maintain continuity of supply without waiting years for new grid infrastructure.”

In response, Supagas is continuing to strengthen its national LPG distribution capability, helping customers adopt solutions that reflect local infrastructure constraints – rather than policy timelines.

2. Regional natural gas closures are speeding up change

Across regional Australia, energy transitions are increasingly being prompted by immediate infrastructure decisions rather than long-term planning. In August 2025, a major energy supplier announced plans to shut down gas supply to 10 regional Victorian towns by 2026, affecting more than 1,100 customers.

“For many regional customers, the transition isn’t optional – it’s happening to them,” Gordon says. “The challenge is making sure people have access to alternatives that are safe, compliant and practical, and that they’re not left to navigate the change alone.”

Supagas is responding by working directly with impacted customers and communities, offering practical guidance on LPG conversion, safety and compliance requirements, and installation considerations, helping minimise disruption while keeping everyday services – such as heating, cooking and hot water – running.

3. Gas market volatility is influencing purchasing decisions

Ongoing volatility in Australia’s gas market continues to shape how customers approach pricing, risk and supply planning. The ACCC’s December 2025 interim gas inquiry report points to persistent price fluctuations and transparency concerns across domestic gas markets.

“When volatility becomes the norm, customers start looking beyond price alone,” Gordon says. “They want suppliers who communicate clearly, respond quickly and can help them manage uncertainty rather than add to it.”

To support customers through that uncertainty, Supagas is maintaining flexible supply options and emphasising responsive service – particularly for commercial and industrial users seeking steadier supply arrangements and clearer communication.

4. Visibility and tracking are becoming baseline customer expectations

As supply chains grow more complex, customers are increasingly expecting better visibility across deliveries, compliance and supply performance – including clearer information about timing, delivery status and site readiness.

“It’s a customer expectation now,” Gordon says. “People are used to tracking parcels they’ve purchased online, and they want that same level of transparency with their gas supply – when it’s coming, what’s been delivered, and whether their site is set up correctly and safely.”

Supagas is investing in tools and systems that lift visibility and operational agility across its LPG network. Telemetry monitoring units on LPG vessels, for example, help anticipate demand, optimise delivery scheduling and reduce customers’ chances of running out of gas – especially for those in regional or remote areas.

“These tools give us better insight into how customers are actually using gas,” Gordon says. “That means we can plan deliveries more efficiently, respond faster when conditions change, and ultimately provide a more reliable service.”

The business is also progressing AI-enabled customer engagement tools to improve service communication, speed up issue resolution, and reduce friction across the customer experience.

5. Increasing momentum for renewable LPG and cleaner fuels

In 2026 and beyond, renewable LPG and cleaner gaseous fuels are attracting greater interest as practical ways to reduce emissions while using existing infrastructure and distribution systems. Industry modelling cited by Gas Energy Australia suggests renewable LPG could progressively replace conventional LPG over time, using the same cylinders and appliances.

“This is where advocacy really matters,” Gordon says. “We’re working closely with industry bodies such as the GEA and government departments to make sure renewable LPG is properly recognised in policy and credit schemes, so the pathway is clear for suppliers and customers alike.”

Practical outcomes, now

For Supagas, the key question in 2026 is straightforward: how effectively can suppliers help customers navigate change while keeping supply safe and reliable?

“Whether it’s market volatility, infrastructure shifts or new technology, our job is to make energy simpler for our customers,” Gordon says. “That’s where our Yes We Can mindset comes in – being responsive and doing what it takes to deliver safe, reliable supply when it matters most.”