The energy price cap is rising by 2% from October 2025. Households on mains gas and/or electricity will likely see their bills increase. If you heat your home with LPG, you may be wondering how the price cap impacts you.
What is the price cap?
Put simply, the energy price cap is set by Ofgem and applies to the cost of mains gas and electricity. Here’s what Ofgem has to say:
“The price cap (the tariff you default to if you’re not on a fixed tariff) – which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use – will rise by around £2.93 a month for the average household.”
It doesn’t cover off-grid fuels such as LPG. That means LPG customers aren’t directly impacted by the cap.
Why LPG pricing behaves differently to mains gas
LPG doesn’t move with the energy price cap because it’s driven by very different forces. For starters, LPG prices are often linked to oil. As a by-product of oil refining, it tends to rise and fall with global oil prices, so even if natural gas prices are steady, LPG can increase because oil costs are up. On the Continent, LPG is used as a substitute for natural gas. It is fed directly into gas mains, which can push LPG prices higher as demand shifts toward this use.
Global supply and demand also play a part. For example, the petrochemical industry is a major user of LPG. When demand spikes, it has a knock-on effect for households. Any disruption to international supply, such as refinery issues, shipping delays, or rising freight costs, can push prices higher, sometimes quite quickly.
Unlike mains gas, which flows through a national pipeline network, LPG must be stored, transported, and delivered directly to the customer. That adds extra cost pressures, from fuel, labour, and storage. And because the LPG market is smaller and more dispersed than the mains gas network, it doesn’t benefit from the same at scale cost advantages. That can make price movements feel sharper and more unpredictable.
Finally, there’s the regulatory difference. Ofgem’s cap places limits on what mains gas suppliers can charge for certain tariffs, but those rules don’t apply to off-grid fuels. That doesn’t mean LPG pricing is random or arbitrary.
What Flogas is doing to help
We know it can be frustrating when prices feel unpredictable. Our pricing is designed with you in mind. There are genuine costs and risks at play, but we work hard to do right by you and manage price shocks.
Take our investment in storage facilities at Teesside and Avonmouth for example. This investment allows us to buy LPG in bulk which helps us smooth out market spikes, mitigate the risk of short-term supply disruptions, and reduces reliance on last-minute spot prices. We’re also constantly improving our supply chain, from logistics to delivery planning, so we can cut out unnecessary costs.
Behind the scenes, our team monitors global markets daily, negotiates supply contracts, and looks for competitive sources so we can secure better prices. And it’s not just about what we do as a supplier: we also provide advice and support to help customers use LPG more efficiently, so your money goes further. We buy in advance to help smooth out price fluctuations.
What you can do to reduce your costs
While there’s no wand we can wave to influence international markets, there are simple steps you can take to bring down your energy bills – no magic required. Using thermostats and timers wisely can make a noticeable difference, as can improving insulation in your walls and loft to stop heat escaping. Even simple changes like lowering the temperature on your washing machine or hot water system can help.
Keeping your boiler and appliances well maintained is another way to avoid wasting energy, small leaks or inefficiencies add up quickly. Some customers also find it pays to plan ahead, ordering LPG before peak winter demand sets in, when prices can sometimes be lower.
Finally, don’t forget to check whether you qualify for financial help. Schemes such as the Winter Fuel Payment, Warm Home Discount, and Cold Weather Payments can provide valuable support during the colder months.
Bottom line
The energy price cap is rising from October, but it only applies to mains gas and electricity, not LPG. Off-grid customers face different cost pressures, from global oil markets to transport and storage. That’s why LPG prices can sometimes feel more volatile than the headlines suggest.
At Flogas, our commitment is to manage these pressures responsibly, investing in infrastructure and security of supply while helping you use energy as efficiently as possible.