https://arab.news/mzqzs
- Official selling prices for propane rose by $15 per tonne from the previous month
- Butane prices increased by $25 per tonne from August
RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, has raised the official selling prices for propane in September by $15 per tonne from the previous month, according to an official statement.
The company also increased butane prices by $25 per tonne from August. Aramco’s September OSP for propane is now $605 per tonne, while butane is priced at $595 per tonne.
Propane and butane are types of liquefied petroleum gas with different boiling points. LPG is commonly used as a fuel for vehicles, heating, and as a feedstock for various petrochemicals.
Aramco’s OSPs for LPG are used as a benchmark for contracts supplying the product from the Middle East to the Asia-Pacific region.
In winter, the demand for propane rises significantly due to its use in heating homes, which can lead to higher prices if supply struggles to keep up.
Such fluctuations are a normal part of the market and are expected during colder months. The increase in prices reflects the basic economic principle of supply and demand, with higher demand resulting in higher costs.