Algeria’s Sonatrach and Saudi Arabia’s Aramco have increased the official selling prices of liquefied petroleum gas (LPG) in August by between 18% and 39% compared to July prices due to rising oil prices and a global shortage of LPG, according to traders.
Aramco increased the official selling price of propane for the month of August by $70 to $470 per ton, while the official selling price of butane jumped by $85 to $460 per ton.
Propane and butane are types of LPG, each having a different boiling point.
LPG is primarily used as fuel for cars and heating, and is also a raw material for other petrochemicals.
Sonatrach also increased the official selling price of propane in August by $70 to $470 per ton, while the price for butane rose by $130 to $465 per ton.
The official selling price set by Aramco for LPG is used as a reference for supply contracts from the Middle East to the Asia-Pacific region.
As for Sonatrach’s official selling price, it is a benchmark for Turkey and the Mediterranean and Black Sea regions.
