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Home Industry News

Supagas ramps up cost-effective, dependable logistics

by Staff Writer
June 27, 2025
in Carbon Neutral Energy, Industry News, Supagas
Reading Time: 3 mins read
A A
A Supagas driver delivers LPG cylinders.

Image: Isuzu Australia.

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Supagas is expanding its national footprint, modernising operations, and paving the way for a lower-emissions future.

Heading into FY25, with economic uncertainty on the horizon, Supagas’s strategic priorities remain clear: improve efficiency, remain cost-conscious, and continue to invest in its people.

With a significant fleet of over 250 trucks and 200 utes, the business is focused on efficiency, logistics, and customer reliability while still managing costs.

Managing Director Erol Arican, now in his fourth year in the role, has guided the business through a phase of rapid growth and regional expansion.

“Our logistics need to be both cost-effective and dependable,” he said.

“So, we’re focused on building systems that can do both.”

While challenges persist such as volatility in supply chains and tighter regulations, new avenues for growth are also emerging.

Supagas is developing alternative energy offerings, growing its CO₂ product range, and pursuing carefully selected acquisitions.

“Last year we acquired Kleenheat in Western Australia, which gives us a springboard for regional expansion,” said Arican.

“It’s about geographic coverage and product diversification — making sure we can offer our full range everywhere we operate.

“We’ve been working behind the scenes to validate our baseline data and submit for certification.

“Once complete, we’ll offer customers the option to ‘opt in’ to carbon-neutral LPG, similar to how green electricity programs work.”

Arican said trade tensions, inflation, shipping delays and the rising cost of raw materials had all recently impacted its sector.

“We’re seeing customers pause large projects or delay investments, which can affect long-term demand,” he said.

“So, we’ve had to adapt.”

Following the 2023 gas policy reforms in Victoria, many end-users assumed LPG would be phased out.

The reality, however, conflicted with this said Arican.

“[LPG remains] a fully viable, flexible solution – especially where natural gas infrastructure is limited,” he said.

With the Victorian Energy Minister confirming that gas will remain “a critical part” of the state’s energy mix, the outlook for LPG in Victoria and beyond remains strong according to Arican.

A major area of investment for Supagas has been verifying and certifying its core LPG products.

“We’ve been working behind the scenes to validate our baseline data and submit for certification,” said Arican.

“Once complete, we’ll offer customers the option to ‘opt in’ to carbon-neutral LPG, similar to how green electricity programs work.”

Participating customers will pay a modest fee, which Supagas will use to purchase verified offsets.

“It’s a simple, transparent model and it gives environmentally conscious customers a way to reduce their impact without changing suppliers or infrastructure,” said Arican.

Arican is enthusiastic about the development of renewable LPG – produced from waste-derived inputs like SAF (Sustainable Aviation Fuel) by-products.

“If we can get even a blended form of renewable LPG into the market, that’s a big step forward,” he said.

Meanwhile, Supagas is backing its expansion with internal investment. From safety system digitalisation to upgrades in fleet tracking and HR technology, the company is modernising from the inside out.

“We’re launching new systems to support our people and reinforce a culture that prioritises safety, reliability, and performance,” said Arican.

With national acquisitions now well underway, Arican remains focused on the importance of maintaining flexibility as the company scales.

“We’ve grown a lot, but we still need to act with the urgency and flexibility of a smaller business,” he said.

“That’s what customers value. That’s what keeps us competitive.”

Supagas’s Net Promoter Score – an index that reflects how likely customers are to recommend the brand – at present sits above the national average.

According to Arican, that reflects “a strong service culture and pride in performance.”

“Anyone can deliver gas,” he said.

“What makes the difference is how you deliver for the customer. We take extreme pride in our service, that’s where Supagas stands apart.”

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