The maximum price of the butane cylinder will rise by 0.18% starting tomorrow, Tuesday, and will stand at 16.64 euros, due to the slight increase of 0.43% in raw materials and freight (+1.18%) and also the depreciation of the euro against the dollar (-4.1%), as published this Monday by the BOE (Official State Gazette).
The maximum sales price of packaged liquefied petroleum gases (LPG) in containers of between 8 and 20 kilograms, that is, lThe traditional butane cylinder is not liberalized and its value is reviewed every two months, on the third Tuesday of the month, by resolution of the General Directorate of Energy Policy and Mines.
This bimonthly review is calculated based on the cost of raw materials (propane and butane) in international markets, as well as the cost of freight (transportation) and evolution of the euro-dollar exchange rate.
Besides, the price evolution, whether upward or downward, is limited to 5%and the excess or defect in price is accumulated for application in subsequent revisions.
Bottled liquefied petroleum gas (LPG) is a mixture of hydrocarbons, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressure containers, especially in towns or urban centers without connection to the natural gas network.
Every year 64.5 million LPG containers are consumed of different capacities, a figure that fell by more than 25% between 2010 and 2021.
Bottle price review
On November 5, MITECO, understanding that in recent years there have been various situations that have caused a relevant economic impact, such as Covid-19 or the invasion of Ukrainebegan the review of the formula that calculates the marketing costs of the cylinder.
To this end, in June it launched a prior public consultation to gather input from all stakeholdersand on the aforementioned date it released to public information a proposal for a ministerial order that can be consulted at the following address: https://www.miteco.gob.es/es/energia/participacion/2024/detalle-participacion-publica-k-7100.
On the other hand, the Spanish Federation of Liquefied Petroleum Gas Distributors (Fedglp) has called an extraordinary assembly in February in which measures such as the indefinite suspension of home delivery of butane cylindersgiven the problems that the sector has been experiencing for a decade, as some distributors complain of having to work “at a loss.”
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