Butane cylinder rises 4.9% and reaches historical maximum

Maximum selling price, butane cylinder after raising it will be 19.55 euro tomorrow tuesday 4.94% The strong rise in raw material prices and freight rates, and the euro’s depreciation against the dollar, places it at a historical maximum.

The Official State Gazette (BOE) published this Monday the decision of the General Directorate of Energy Policy and Mines explaining the rise of the cylinder with e.l 6.1% increase in raw material prices, 9.8% increase in freight prices, Added to this was the 3.6% depreciation of the euro against the dollar.

The maximum price increase has been softened as it is capped at a maximum of 5%. Without this limitation, it would have increased by 8.19% according to the sources of the Ministry of Energy Conversion.

The maximum selling price of bottled liquefied petroleum gases (LPG) in 8 to 20 kilo containers, which are conventional butane cylinders, is not liberalized and is reviewed bimonthly based on international raw material (propane and butane) costs. markets, freight rates and the evolution of the euro-dollar exchange rate.

Bottled LPG is a hydrocarbon mixture consisting predominantly of butane, which is not connected to the natural gas network and serves as an alternative to natural gas for energy consumption in pressure vessels, especially in towns or city centers.

Right now 68 million different capacity LPG containers are consumed53 million are subject to the regulated maximum price, but the use of this fuel is declining, so it fell by 20% between 2009 and 2018.

Around two million households (1.9 million) are potential beneficiaries of the thermal social bonus this year equipped with €228 million for 2022.

Also from tomorrow, a new maximum price for tubular LPG will come into effect, which represents a 7.9% reduction in an average customer’s bill compared to current prices.

This decrease in the bill is due to the decrease in international prices of propane (-15.4%) and butane (-9.4%) compared to the previous month, despite the depreciation of the euro (-1.8%) against the dollar. and an increase in freight rates (+15.9%).

Annual invoice with new prices, biggest drop last yearEmphasizes the transition.

Approximately 360,000 consumers receive this LPG supply via pipeline, which is an alternative to natural gas supply in small towns or city centers far from the natural gas network.

Source: Informacion

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