Timor-Leste LPG Filling Station Market

Industry Overview

The Timor-Leste LPG consumption valued at USD 78.41 million in 2023 and is projected to grow at a CAGR of more than 49.3% over the forecast period of 2023 to 2030. Timor-Leste's liquefied petroleum gas (LPG) market is characterized by a growing demand and a developing regulatory framework. In 2022, the country exported approximately $72.4 million worth of petroleum gas, primarily to Japan, while importing around $1.84 million, mainly from Australia and Indonesia. The government has established regulations to ensure the safe installation and operation of fuel filling stations, including those for LPG, under Regulation No. 1/2013. This regulation outlines the necessary conditions for the construction and operation of filling stations, emphasizing health, safety, and environmental standard.

The market is consolidated with players in the space adopting various strategic initiatives such as collaborations, and research & development activities to sustain their position in the market.

The supply chain of the liquefied petroleum gas (LPG) market in Timor-Leste encompasses a series of interconnected activities, each adding value to the product as it moves from international suppliers to end users. The initial stage of the supply chain involves the sourcing and procurement of LPG. Timor-Leste predominantly relies on imports due to its limited domestic production capabilities. Major international suppliers, including oil and gas companies from neighboring countries like Indonesia and Australia, play a critical role in this stage. These suppliers refine crude oil and process natural gas to produce LPG, ensuring a steady supply to meet Timor-Leste’s demand.

The growing adoption of LPG as a primary fuel in the automotive sector further underscores the market's expansion. Inspired by successful models in Southeast Asian countries like Indonesia and Malaysia, the Timor-Leste government is planning to introduce incentives and subsidies to promote LPG usage in transportation. These measures may include subsidies for conversion kits and tax incentives for LPG-powered vehicles, making the switch more feasible for fleet operators and individual consumers. The environmental benefits of LPG, characterized by lower emissions compared to traditional fuels, align with global trends toward cleaner energy. As more vehicles transition to LPG, the demand for filling stations is expected to rise, further driving infrastructure investments.