Butane Cylinder Pricing: Current Costs, Trends, and Regulatory Impacts

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Official State Gazette published on Monday, March 20 the latest rate for butane cylinders, showing a new pricing level of 16.79 euros. The adjustment comes after a recent review by the Ministry of Ecological Transition and Demographic Challenge and indicates a continued trend of price stabilization within regulated limits.

Last year, the Government capped the maximum selling price of a butane cylinder at 19.55 euros until June 30, 2023. That cap established the ceiling for liquefied petroleum gases packaged in containers under 20 kilograms, including those with a load of at least 8 kilograms. This policy aimed to shield consumers from sharp price swings while keeping the market open to competition for other products.

How much does a butane cylinder cost now?

As of Tuesday, March 21, the maximum selling price is set at 16.79 euros, a decrease from the prior level of 17.66 euros. This adjustment reflects ongoing management of energy costs while balancing industry supply considerations. In consumer markets across North America, similar patterns emerge when regulators monitor LPG pricing and ensure fair access to essential fuels (Source: Energy Market Reporting).

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About 1 euro discount on the price of butane

The March 2023 update saw the price of the butane cylinder dip to about 16.80 euros. Although the butane market operates with liberal principles, a government-regulated ceiling for the conventional 12.5-kilogram cylinder limits how much prices can rise or fall, typically within a 5% range. With this latest discount, the price drops by roughly 0.87 euros, reinforcing the idea that regulatory measures can provide steadier consumer costs even amidst market fluctuations.

File – Details of butane cylinders loaded on a truck — Ricardo Rubio – Europa Press – Archive

The bottle has gone up almost 5 euros in 3 years

Regulated cylinders must be sold at the stated price, even when retailers offer other products at their own promotional levels. Despite recent declines, current prices remain well above the 2020 levels, when a bottle cost around 12.09 euros in September of that year. That milestone underscores how regulatory action and market dynamics can diverge over time, influencing household budgeting for energy needs in both Europe and North America.

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What does the price of a butane cylinder depend on?

Pricing for butane cylinders is reviewed on a bi-monthly basis and is tied to several interrelated factors. Raw material costs on international markets, including propane and butane, are primary drivers. Other elements such as freight or shipping costs and fluctuations in the euro-dollar exchange rate also play a role, as reported by energy news agencies. These components combine to shape the final consumer price in regulated markets and in imports that feed local inventories.

On this occasion, shifts in currency value and freight costs contributed to price movements: the euro strengthened against the dollar by around 3.3%, while freight costs decreased by about 32.9%. At the same time, raw material prices rose by roughly 14.8%, but the overall impact was cushioned by a favorable balance from the current surplus per bottle, estimated against prior periods. Market observers note a net effect that helps explain why a price drop occurred in March, even as some inputs rose.

The price of the butane cylinder. Pixabay

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