RIYADH: Saudi Aramco has reduced the official selling prices for propane and butane for January 2025.
According to an official statement on Tuesday, the price of propane was lowered by $10 per tonne, while butane saw a $15 per tonne reduction compared to the previous month.
Propane and butane are both types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as a feedstock in the petrochemical industry. These products have distinct boiling points, making them suitable for different applications.
Aramco’s OSPs for LPG are widely used as benchmarks for contracts supplying the product from the Middle East to the Asia-Pacific region.
Demand for propane typically increases during the winter months, as it is heavily utilized for home heating.
Such seasonal demand spikes can lead to price fluctuations, as supply and demand dynamics come into play. Higher demand during colder months often results in rising prices, reflecting the basic economic principle of supply and demand.