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Gas Service Charge Explained

15 Jun, 2026 | Business LPG, Residential LPG

In this article:

Understand the significance of gas service charge? What does it covers, why is it charged, and how does it compare to natural gas fees...

Gas Service Charge Explained

Many think that the gas service charge is rental. It is not.

You will normally only see a service charge* once a year, as it is an annual fee.

It will typically appear as a separate invoice.

Service Charge Transparency

We want our customers to be fully informed about service charges from before the first bottle is delivered.

It is standard policy for our customer service team to disclose the existence and amount of the service charge prior to the initiation of deliveries.

ELGAS does not want any surprises when it comes to receiving a service charge.

Why is There a Service Charge?

NZ Gas Bottle ExchangeELGAS typically provides two 45kg LPG gas bottles for our customers’ use.

We maintain ownership and responsibility for the cylinders at the customer’s property.

As owners of the cylinders, we are responsible for any needed maintenance and compliance with all applicable safety regulations.

If the cylinders ever need repair or replacement, we do that with no additional charge to the customer.

The Service Charge helps defray our costs associated with cylinder acquisition, maintenance, insurance and periodic testing that must be performed to ensure that the cylinder is in a safe condition.

As it relates primarily to the cylinders, it varies based on the number and type of cylinders you may have.

No Rental Charge

The Service Charge is not a rental fee.

We do not charge “rent”.

Less than Natural Gas Fees

The Service Charge is very similar to the “Supply Charge” or “Facility Fee” billed by natural gas companies, except that our Service Charge is usually less.

In addition, unlike natural gas suppliers, we have NO meter reading fees, payment processing fees, early termination fees, meter testing charges or account establishment fees, all of which are common with natural gas suppliers.

In fact, our fees are so much lower that, for certain customers, using LPG can be less expensive than natural gas.

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*Commercial supply terms may be different.