Hello,

I'm just looking for a bit of advice about the norm for LPG bulk pricing (domestic) please. We moved house a while ago and signed a 2 year contract - the first year of which was a "fixed" price per litre and the second it went to a variable rate.

The initial cost in December 2021 was 39p/litre and they fairly quickly added an 18p/litre "surcharge" due to market pricing (I imagine when Russia invaded Ukraine). That surcharge has been on ever since. We've now moved to year 2 of the contract and the price is 46.5p/litre with a 15p surcharge so I've just placed an order at 61.5p/litre. I don't think I have much choice as I can't go elsewhere at the moment due to the contract.

It's difficult to understand the economics of fuel pricing - up like a rocket, down like a feather seems apt but I'm sure there is more to it and I understand that businesses do need to make a profit.

As I understand it, LPG is propane and looking here the cost seems to be down almost 40% over the last year: https://tradingeconomics.com/commodity/propane

So 2 questions for me - 1) is it normal to have a fixed price contract where one side can vary the price via surcharge whenever they like? (I'm sure the very small print will allow them to do this and I'll have to dig the contract out to review).

And 2) what is everyone else paying per litre at the moment please as it "feels" like I'm being taken for a ride?

I'm not new to LPG - I had it at my previous house for 15 years but with a different supplier and never experienced the surcharge.

Many thanks.