Peru LPG Market Report and Forecast 2024-2032

Peru LPG Market Size

The Peru LPG market reached around 1.67 million tons in 2023. The market is projected to grow at a CAGR of 1.7% between 2024 and 2032, reaching almost 1.94 million tons by 2032.

Peru LPG Market Outlook

• LPG is expected to find increasing application in Peru’s automotive sector.

• Latin America accounts for 9% of the global LPG demand, at 27MMT annually.

• In August 2023, LPG was the second most popular fuel by sales in Peru (after diesel), constituting 21% of all sales.

Peru LPG Market Growth

The residential and commercial demand for LPG constitutes 80% of the overall consumption in Latin America. This is in stark contrast to other countries like the United States and China, where the commercial and residential demand for LPG represents just 29% and 49% of the overall consumption respectively.

There are 650,000+ LPG-powered vehicles in Peru, which constitute 38% of the total LPG demand in the country. The annual consumption of LPG in Peru is 2 million tons. The expansion of the existing network of LPG refuelling stations (1500 at present) is also promoting the usage of LPG as a cheaper and much more eco-friendly alternative to gas and diesel.

LPG results in 30% more savings as compared to low-sulphur diesel and minimises carbon emissions. Commercial careers are major end users of LPG, and their expansion is expected to promote the market growth, as per the SPLG (Peruvian Liquefied Gas Association).

In 2022, the government of Peru raised the value of its LPG cylinder discount voucher for low-income households from PEN 20 to PEN 25. Such measures, implemented during times of energy crises, are expected to sustain the demand for LPG over the forecast period.

Peru LPG Industry Segmentation

Peru LPG Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Refinery

• Associated Gas

• Non-Associated Gas

Market Breakup by Application

• Residential

• Commercial

• Industrial

• Transport

• Others

Peru LPG Market Share

Based on application, the market is divided into residential, commercial, industrial, and transport, among others. Over the forecast period, residential application of LPG is expected to dominate the market, due to the growing demand for safe fuels within households for cooking and heating purposes.

Leading Companies in the Peru LPG Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers and acquisitions, investments, and capacity expansion.

• Repsol S.A.

• Petroperú S.A.

• Shell Plc

• Others

Major market players are expected to rely on refineries for making LPG over the forecast period.

Key Highlights of the Report