Butane Cylinder Prices Surge In 2024

Butane Costs Set To Rise

Bottled gas being delivered in Spain. Credit: Philip Lange/Shutterstock.com

As we step into the new year, it is worth considering the rising costs set to impact one’s household.

January 2024 is expected to see a noticeable hike in the price of butane gas cylinders, a crucial commodity for cooking and heating in many homes throughout Spain.

This price increase comes amidst various family festivities and the arrival of the Three Wise Men, a time traditionally marked by higher consumer spending.

Notably, the demand for new butane cylinders spikes during this period, as families prepare for the holiday season. As of now, despite legal caps, the cost of these cylinders has risen compared to recent months.

This trend is set to continue into January. While Europe grapples with soaring inflation affecting electricity, tobacco, groceries, and petrol, butane cylinder prices have remained relatively stable due to legal limits. However, they have not been immune to recent increases.

Government Intervention In Pricing

The Spanish Government, through Royal Decree-Law 11/2022 of June 25, capped the maximum price of butane cylinders weighing between eight and 20 kilograms at €19.55.

This cap was extended by Royal Decree-Law 5/2023 until December 31, 2023. Consequently, the current price of a butane cylinder is €15.14, marking an increase from previous months. In the last Council of Ministers meeting of 2023, the government decided to maintain the maximum price at €19.55 euros for the forthcoming year.

Factors Influencing Butane Cylinder Costs

The pricing of butane cylinders hinges on several factors, including the international market prices for propane and butane, transportation costs, and the euro-dollar exchange rate dynamics.

In addition to these elements, VAT at 21 per cent and the Special Tax on Hydrocarbons (IEH) of €1.5 per kilo are also included. The price escalation was triggered by Russia’s invasion of Ukraine, leading the government to impose a five per cent limit on price fluctuations.

Bottled liquefied petroleum gas, predominantly comprising butane, is an alternative energy source often used in regions without access to natural gas networks.

Despite its widespread use, with 64.5 million containers consumed annually, there has been a more than 25 per cent drop in consumption from 2010 to 2021.

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Written by

John Ensor

Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina. He is passionate about news, music, cycling and animals.