Slowdown in LPG growth rate

Demand for liquefied petroleum gas (LPG) is set to grow by 5-7 per cent annually in the next couple of years, down from the 18 per cent annual increases recorded between 1990 and 2001, said Reuters. LPG is used widely in urban areas for cooking and heating water, but demand in the cities has almost reached saturation point. One Shanghai-based LPG executive with a European company said that it would be difficult to exploit potential demand in rural areas in the short-term because of low income levels.