The maximum selling price for butane cylinders is set to rise to 19.55 euros tomorrow, Tuesday, reflecting a 4.94% increase. A sharp uptick in raw material costs and freight charges, along with the euro’s weakness against the dollar, has pushed prices toward a record high.
On Monday, the Official State Gazette (BOE) published a decision from the General Directorate of Energy Policy and Mines explaining the cylinder price adjustment. The rise stems from a 6.1% increase in raw material costs and a 9.8% bump in freight prices, further amplified by the euro’s 3.6% depreciation versus the dollar.
To prevent an abrupt surge, the price increase is capped at a maximum of 5%. Without this cap, the rise would reach about 8.19%, according to sources from the Ministry of Energy Conversion.
The ceiling applies to the maximum selling price of bottled liquefied petroleum gas (LPG) in 8 to 20 kilogram containers, commonly known as conventional butane cylinders. Prices are reviewed bimonthly based on international propane and butane costs, freight rates, and the fluctuations of the euro against the dollar.
LPG in bottled form is a hydrocarbon blend dominated by butane. It does not link to the natural gas network and serves as an alternative energy source in areas lacking gas infrastructure, especially in urban centers and smaller communities where space and delivery options are limited.
Today, around 68 million LPG containers of varying capacity are in use; about 53 million are currently governed by the regulated maximum price. The overall demand for this fuel has declined, showing a drop of around 20% from 2009 to 2018 as households shifted to other energy choices or upgraded heating systems.
Approximately two million households, about 1.9 million people, stand to benefit from the thermal social bonus this year, with allocations totaling around €228 million for 2022. This support is designed to help lower-income families manage energy costs as prices shift in the market.
Starting tomorrow, a new maximum price for tubular LPG will take effect. This adjustment corresponds to a reduction of about 7.9% on the average household bill relative to current prices, offering relief to energy users in the short term.
The decline in household expenses is driven by lower international prices for propane, down about 15.4%, and for butane, down around 9.4% compared with the previous month, even as the euro weakens against the dollar by roughly 1.8%. Freight rates have risen by approximately 15.9%, influencing the cost structure for suppliers and consumers alike.
As the year advances, the system highlights a shift in yearly invoices with the new pricing. The focus remains on easing the financial burden on families while maintaining a stable supply of LPG across the country. Changes in market dynamics and regulatory measures are tracked to ensure a balanced approach between affordability and reliability for LPG users.
Nearly 360,000 consumers receive LPG through pipelines, an alternative supply method for areas not connected to the natural gas network. This network serves towns and city centers that are spatially distant from conventional gas infrastructure, offering a practical option for steady energy access.
Notes and data cited in this report come from official government publications and industry analyses, reflecting the ongoing policy actions and market movements that affect the LPG sector. Citations: Official State Gazette (BOE), Ministry of Energy Conversion, and related energy policy documents. [Source: BOE; Ministry of Energy Conversion]