The price rise of butane cylinders and government actions
The cost of butane cylinders surged to unprecedented highs last year, influenced by global events that pushed up oil, natural gas, and liquefied gas prices. A record peak reached 19.55 euros for a 12.5 kg cylinder on May 17, 2022, and this level remained for about six months.
Spain’s government recognized the burden of rising prices and responded with a royal decree that established a maximum price of 19.55 euros for the 12.5 kg butane cylinder. The rule aimed to shield households from sharp spikes in energy costs and provided a stabilizing mechanism during a period of economic strain.
The regulation was extended through December 31, 2023, allowing price moderation but not preventing continued high levels. A subsequent decree introduced a limit on monthly price movement of plus or minus 5 percent. This cap helps consumers during periods of volatility, yet some argue it can dampen benefits when fuel costs are low.
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A positive measure
Since these measures were implemented, butane prices have eased. A 12.5 kg cylinder that once peaked at 19.55 euros now sits around 14.43 euros, marking the lowest level seen in more than two years and offering relief to households seeking affordable energy options.
The Ministry of Ecological Transition reviews the price limits every two months in line with the Royal Decree, maintaining the 5 percent ceiling for increases and decreases. While a government ceiling helps stabilize costs, market forces still influence the actual price across suppliers and regions. The next price update is anticipated when the official bulletin is published, typically on the third Tuesday of odd months, with the upcoming notice expected in early 2024.
The price of butane is likely to move again soon and a timeline is in place.
How the price of butane is determined
As noted, butane pricing follows international market trends, yet several factors also influence the final cost. Currency exchange rates, particularly euro to dollar, and decisions by liquefied gas producers play a key role. In addition, VAT and special hydrocarbon duties must be added to the base cylinder price, shaping the total cost for consumers.
It is important to account for all components that contribute to the price of a butane cylinder. Aftermath fees and taxes can significantly affect the final amount paid by households and businesses alike.