The official State Gazette announced a new rate for butane cylinders after a recent review by the Ministry of Ecological Transition and Demographic Challenge, showing a decline to 16.79 euros.
Last year, the government froze the maximum price of a butane cylinder at 19.55 euros until June 30, 2023, meaning the price could not exceed the level set by that date. This ceiling applies to the maximum selling price of liquefied petroleum gas cylinders when loads are under 20 kilograms and when loads are 8 kilograms or more.
How much does a butane cylinder cost now?
As of March 21, the price is fixed as the maximum selling price at 16.79 euros, down from the previous 17.66 euros.
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About 1 euro discount on the price of butane
The cost of the butane cylinder has dropped again to 16.80 euros in March. Although the butane market is liberal, the standard 12.5 kilogram cylinder carries a government-regulated ceiling to ensure price changes do not exceed 5 percent. With this latest discount, the price drops by nearly one euro, a reduction of 0.87 euros per cylinder.
The bottle has gone up almost 5 euros in 3 years
This regulation means sellers must offer the cylinder at the stated price, even if they run promotions on other products. Despite the recent dip, prices are still far from the 2020 lows when the cylinder cost about five euros less, at 12.09 euros, in September of that year.
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What does the price of a butane cylinder depend on?
The price calculation for the butane cylinder is reviewed on a bi-monthly basis. It hinges on the costs of raw materials in international markets, including propane and butane. Freight charges and the evolution of the euro to dollar exchange rate are also factors, according to the reporting agency.
On this occasion, the euro’s strength against the dollar contributed to a price adjustment, along with a reduction in freight costs, while an increase in raw material costs partially offset the benefit. The net effect was a nuanced shift that influenced the overall per-bottle price.