The usage of traditional fuels is severely affecting the health of people and also the environment as a result of pollution and deforestation. Liquefied Petroleum Gas (LPG) is a clean, environmental friendly, efficient and portable energy option which can be a savior to the health and environmental problems. This requires shifting from the use of traditional fuels to LPG. However, the utilization of this noble fuel is very low in Ethiopia. The purpose of this study is to examine the factors which make the utilization of LPG very low and propose solutions to make the supply reliable, the product more affordable and also make fast transition from traditional fuels to LPG. Literature review is made to identify the factors which need to be considered. The study adopted mixed type research methodology. Hence, both qualitative methods of data collection and analysis as well as quantitative analysis using questionnaire are used. The information from primary and secondary sources is then used to conduct the assessment. Data was gathered thorough questionnaire and interview from all target population which are supervisors of all retail stations and distributors of companies distributing LPG in Addis Ababa, Ethiopia. Raw data were analyzed with the help of both descriptive and inferential statistics. Descriptive charts and percentages as well as inferential tools such as correlation and regression analysis are utilized in the study. The major factors which the study identified as influencing the utilization of LPG in Ethiopia are regulatory & policy gaps, infrastructure, capability of distributors, awareness and ICT & Collaboration. Thus, the study recommended that the Government needs to work on developing clear Policies and regulations on LPG business and operations, create awareness and promote LPG to benefit from the industry. The government should also consider subsidizing the product especially to the lower class society and encourage investment in the sector by setting clear policies & regulations, availing the required foreign currency, tax exemption on importation of LPG gadgets and accessories such as stove, cylinder, regulator, hose, etc. Improving the overall infrastructure in order to achieve better supply and affordability of the LPG sector is also important. It is also recommended that LPG companies should consider using latest ICT and other technologies as well as collaborate on LPG related issues for better results. Moreover, the ultimate goal that requires the governmentâ€™s utmost attention, which is a strategy on scaling up (Large scale transition) to switch from traditional fuels to LPG within a certain period is recommended.