Cost of a butane gas bottle reaches its record high in Spain

The price of a bottle of butane gas will reach an all-time record this week in Spain

Another consequence of the conflict in Ukraine is the price of butane gas cylinders. As of tomorrow, Tuesday, May 17, the cost of a bottle will reach its historical high in Spain, at €19.55 each. This is the result of a 4.94 per cent increase. 

A combination of the sharp rise in the cost of raw materials, transportation costs, and the weak strength of the euro against the dollar is to blame for this record price in butane bottles.

The resolution of the General Directorate of Energy Policy and Mines published the relevant information in the Official State Gazette (BOE). It explained the rise in the bottle due to the 6.1 per cent increase in the prices of the raw material, and the 9.8 per cent rise in the price of freight. Added to these is the depreciation of the euro against the dollar by 3.6 per cent.

According to sources from the Ministry of Energy Transition, this maximum price increase has been tempered because it is capped at a maximum of 5 per cent. If this limitation did not exist then the bottle would have increased by 8.19 per cent.

Every two months the price of bottled liquefied petroleum gases (LPG) in containers of between 8 and 20 kilos is reviewed. Their price is then fixed based on the costs of the raw material (propane and butane) in international markets, freight rates, and the evolution of the euro-dollar exchange rate.

From Tuesday, May 17, a new maximum price for piped LPG will also come into force. This represents a 7.9 per cent decrease in the bill for an average customer, compared to current prices.

This drop in the household bill is due to the decrease compared to the previous month in the international prices of propane (-15.4 per cent) and butane (-9.4 per cent), despite the depreciation of the euro against the dollar (-1 .8 per cent) and the increase in freight rates (+15.9 per cent).

Around 360,000 consumers receive this supply of LPG by pipeline, an alternative to the supply of natural gas in small towns or urban centres far from the natural gas network.

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