The price of a butane cylinder drops to its lowest in a year after falling 4.94%

The price of the butane cylinder will drop by 4.94% starting this Tuesday, September 19, reaching 14.43 euros. As indicated by the Ministry of Economic Transition, this is the lowest price that butane has recorded so far this year.

From the official data published in the Official State Gazette, it can also be deduced that this will mean that the maximum retail price of the butane cylinder will be 26% lower than that recorded in the review of September 19, 2022. when it reached its highest value.

The decrease in price is due to the fact that, despite having registered increases in the price of raw materials (+35.75), the value of the euro against the dollar (+1.2%) and freight costs (+0.7%), enough surplus has been built up over the last few months to offset the increase in prices.

The maximum price is €19.55

The maximum sales price of packaged liquefied petroleum gases (LPG) in containers of between 8 and 20 kilograms – the traditional butane cylinder – is not liberalized. Its value is reviewed bimonthly 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 (transport) and the evolution of the euro-dollar exchange rate. The price revision, upward or downward, is limited to 5%, with the excess or defect in price accumulating for application in subsequent revisions.

Bottled liquefied petroleum gas is a mixture of hydrocarbons, mainly butane compounds, that 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.

Currently, 64.5 million LPG containers of different capacities are consumed annually. It is a fuel in decline, since from 2010 to 2021 the total consumption of LPG bottles has decreased by more than 25%.

Royal Decree-Law 11/2022, of June 25, limited the maximum price of a butane cylinder between 8 and 20 kilograms to 19.55 euros, a measure that Royal Decree-Law 5/2023 extended last June. until December 31, 2023.

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