The price of a butane cylinder in Spain will drop on Tuesday, November 15, to €18.58 per 12.5 kg bottle.
This is compared to the €19.5 it has been over the last six months, as published on Monday, November 14, by the Official State Gazette (BOE). The new rate goes into effect today and will remain until the next review, on January 17, 2023.
The maximum sale price of bottled liquefied petroleum gases (LPG) in containers between 8 and 20 kg (the traditional butane cylinder) is not fixed, its value is reviewed bimonthly on the third Tuesday of the month by the Directorate General of Energy Policy and Mines.
Why has the price of the butane cylinder dropped?
In accordance with the methodology established by current regulations, the bimonthly price review is calculated based on the cost of the raw material (propane and butane) in international markets, as well as the cost of freight (transportation) and the evolution of the Eurodollar exchange rate.
Price revisions, upwards or downwards, are limited to 5%.
Bottled LPG is a mixture of hydrocarbons, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressure containers, especially in towns or urban centers without connection to the natural gas network.
Currently, 68 million LPG containers of different capacities are consumed, of which 53 million are subject to the maximum regulated price (78%). It is a fuel in decline, since from 2009 to 2018 the total consumption of bottled LPG has decreased by 20%.