Butane Cylinder Pricing Update and Market Trends

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On Monday, the Official State Gazette (BOE) announced a new rate for butane cylinders after the latest review by the Ministry of Ecological Transition and Demographic Challenge. The new cap sits at €16.79 per cylinder, reflecting a slight move downward from previous levels.

Last year, the government froze the maximum price for a butane cylinder at €19.55 through June 30, 2023. The price ceiling applied to the maximum selling price of liquefied petroleum gas packaged in containers under 20 kilograms or carrying a load of 8 kilograms or more.

How much does a butane cylinder cost now?

From Tuesday, March 21, the price is determined as the maximum selling price, standing at €16.79 and showing a drop from the prior €17.66 level. These figures set the upper limit that retailers may charge for the product during the current cycle.

Cheap butane gas stoves at Carrefour: take advantage of the offers

There is also news of ongoing promotions at major retailers. Savings opportunities on butane gas stoves appear alongside the cylinder price adjustments, giving buyers a chance to plan purchases with a broader view of total costs.

About a 1 euro discount on the price of butane

The March 2023 update sees the butane cylinder price dip to €16.80. While the butane market operates with liberal pricing, a government-regulated cap remains in place for the standard 12.5 kilogram cylinder. Changes in price typically stay within a 5 percent band, preventing sharp swings. The latest discount reduces the price by roughly €0.87, contributing to a tighter overall price range for consumers.

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

Retailers must honor the stated regulated price even when promoting other products at their own set prices. Despite the recent decline, today’s level remains well above the 2020 figures, when the same bottle cost about five euros less, roughly €12.09 in September of that year.

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What does the price of a butane cylinder depend on?

The calculation of the butane cylinder price is reviewed every two months and is built on several factors. Raw material costs in international markets, especially propane and butane, play a central role. Freight or shipping charges and the evolution of the euro against the dollar are also considered, as reported by EFE. In practice, pricing reflects a mix of supply costs, currency movements, and logistics considerations that influence the final consumer price.

The price of the butane cylinder. Pixabay

Recent movements show the euro gaining value against the dollar by about 3.3 percent and freight costs falling by roughly 32.9 percent. At the same time, raw material prices increased by around 14.8 percent, a dynamic that partially offset the fall from the currency and transport savings. The net effect is a modest price adjustment, translating to a lower consumer cost per bottle in some markets while keeping the overall pricing structure stable.

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