The price of butane has delivered a positive adjustment for customers. The rate is adjusted every two months, and on September 15th, the Official State Gazette (BOE) announced the maximum retail price for a 12-kilo butane cylinder through mid-November. The price of a cylinder will decrease by 5% starting Tuesday, September 16th, from €17.11 to €16.27, marking the second straight decline, according to the resolution issued by the Director General of Energy Policy and Mines, Manuel García Hernández.
According to sources from the Ministry for Ecological Transition and the Demographic Challenge, the decrease in this latest revision is due to a drop in raw material prices (-1.6%) and the euro’s appreciation against the dollar (+2.3%), which offset the increase in freight rates (+14.9%). This price adjustment, whether upward or downward, is limited to 5%, with any excess or shortfall accruing for future adjustments.
Bottled LPG is a mixture of hydrocarbons, primarily butane, that is used as an alternative to natural gas for energy consumption in pressurised containers, particularly in towns or urban areas that are not linked to the natural gas grid.
Currently, 64.5 million LPG cylinders of various sizes are consumed annually. This fuel is in decline; from 2010 to 2021, overall bottled LPG use fell by more than 25%.
Regulated price
The maximum sales price for bottled liquefied petroleum gas (LPG) in containers measuring 8 to 20 kilogrammes (the classic butane cylinder) has not been liberalised. The value is assessed bi-weekly on the third Tuesday of each month by the General Directorate of Energy Policy and Mines.
This bi-monthly review is calculated using the cost of raw materials (propane and butane) in international markets, freight costs (transport) and the euro-dollar exchange rate’s evolution.
Author: Derek Appleton
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