The butane cylinder reviews its price and drops to 18.58 euros from this Tuesday


The price of the butane cylinder will drop to 18.58 euros starting tomorrow, Tuesday, per 12.5 kg bottle, compared to the 19.5 euros at which it has stood in the last six months, as published on Monday by the State official newsletter (BOE). The maximum sale price of liquefied gases of bottled petroleum (LPG) in containers of between 8 and 20 kg (the traditional butane cylinder) it is not liberalized and its value is reviewed bimonthly on the third Tuesday of the month by resolution of the General Directorate of Energy Policy and Mines.

Why does the price of the butane cylinder drop?

According to the methodology established by current regulations, the bimonthly review of the price is calculated based on the cost of the raw material (propane and butane) in international markets, as well as the cost of freight (transport) and the evolution of the Eurodollar exchange rate. On the other hand, said revision of the price, upwards or downwards, is limited to 5%, accumulating the excess or defect in price for its application in subsequent revisions.

This two-month period despite the fact that the price of raw materials has suffered a decrease of 10%, the cost of freight has shot up 24% and the dollar has appreciated 2.8% against the euro. It should be remembered that the royal decree law on measures to address the consequences of the war in Ukraine and situations of social and economic vulnerability froze the maximum price before taxes of liquefied petroleum gas (LPG) packaged between 8 and 20 kg.

Bottled LPG is a mixture of hydrocarbons, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressurized containers, especially in towns or urban centers without connection to the natural gas network. Currently 68 million containers of LPG are consumed of different capacities, of which 53 million are subject to the maximum regulated price (78%). Despite everything from 2009 to 2018 the total consumption of bottled LPG has decreased by 20%.


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