Investigation into factors contributing to the performance of household liquefied petroleum gas in Durban.

Abstract

The Liquefied Petroleum Gas (LPG) cylinder market consist of a group of consumers with similar yet differentiated needs, namely commercial customers (small industries, restaurants, wholesalers and nature reserves), low-income customers (such as the rural and township households with a monthly income of R748 - R2288) and high-income customers (such as the urban households with a monthly income above R9743). LPG is mainly used for cooking, lighting, heating, leisure and as a preferred form of energy in the commercial segment. The key issues currently facing the industry are: minimum growth, high capital requirement, rising cost of product and squeezing profitability.