Liquefied Petroleum Gas (LPG) Bottling: An Activity of Strategic Value and a Public Service

Abstract

The article outlines the regulations behind the liquefied petroleum gas (LPG) supply chain, specifically the bottling of the gas. The study draws on a review of current regulations, public data, and the author's professional expertise in regulatory management, concessions, and fuel sector oversight. Statistics reveal that between 2015 and 2024, consumption grew by 78.9%, reaching 459.84 million net liters. The 2015 supply shortage—triggered by an ownership and corporate dispute involving one of the state-concessioned bottling plants—demonstrated that service continuity was far from guaranteed. It brought to light the vulnerability and critical importance of the sector, given that LPG is vital to households, commerce, industry, institutional settings (such as schools and hospitals), and transportation. Against this backdrop, this paper shows how new LPG bottling plants can enter the public service market in Costa Rica. The LPG sector is governed by a regulated public service regime covering key stages of the supply chain. This framework mandates authorizations, concessions, permits, technical standards, and supervisory oversight from initial state supply through to end-user delivery. Specifically, the article outlines the requirements for constructing and operating a bottling plant—criteria that, while functioning as barriers to entry, serve to safeguard safety, continuity, quality, traceability, and the public interest. Finally, it argues for robust regulatory oversight to secure continuity of service amid rising demand and diversifying LPG applications, while advocating for the entry of additional bottling plants into the market considering the service's socio-economic sensitivity and sustained growth across Costa Rica.