LPG stands for liquefied petroleum gas derived from petroleum refining and processing of natural gas. It is made mostly of hydrocarbons in vapor form at normal temperatures and pressures, but it can turn into liquid at a certain pressure. LPG’s main component is propane and is sometimes referred to by that name. LPG is used for heating homes in areas where gas pipelines do not run. It is also a widely used alternative fuel for car engines in the US. LPG is cheaper than gasoline in most places at most times.