Liquefied Petroleum Gas (LPG) is one of the alternate sources of energy because of its availability and high heating value. As the interest in LPG production in Nigeria and other developing countries increases, it is imperative to study some of the flow assurance issues associated with LPG. Due to the presence of moisture in commercial LPG, hydrates can form during LPG production, transportation and storage. Hence, it is important to predict hydrate forming conditions of LPG and propose a prevention plan if the LPG production, transportation or storage system falls in the hydrate formation zone. This paper examines the mechanism of hydrate formation in LPG and how LPG hydrates can be inhibited using methanol and ethanol. The inhibitor effectiveness was evaluated by the degree of temperature depression effected by equal amounts of these inhibitors. It was discovered that Methanol performed better than Ethanol when 20wt% of methanol and 20wt% of ethanol respectively were used in inhibiting hydrates formed in LPG. The effect of dehydration on LPG hydrate formation was also examined by varying the water content of the LPG from 7wt% water to 2.5wt% water. This simple approach to hydrate inhibition will enable the Engineer reduce the risk of hydrate formation during LPG production, transportation and storage.