Saudi Aramco Keeps LPG Prices Stable in May, Sonatrach Cuts Them Sharply

Sources: Reuters | Edited by Avanty Nurdiana

KONTAN.CO.ID - MOSKOW. Saudi Aramco, the state-owned oil producer of the Kingdom of Saudi Arabia, has maintained its official selling price (OSP) for liquified petroleum gas (LPG) in May. On the other hand, Sonatrach, the state-owned energy company of Algeria, has cut its prices due to the increase in global supply and decline in demand, as reported by traders on Monday.

For May, the OSP of Saudi Aramco remains at $750 per metric ton for propane and $800 per ton for butane.

Propane and butane are the two main types of LPG with different boiling points. LPG is used as a fuel for vehicles, heating, and raw material in the petrochemical industry.

Meanwhile, Sonatrach has lowered its official selling price for LPG in May. The price of propane has been reduced by $150 per ton to $700, while the price of butane has been decreased by $20 per ton to $880.

The price benchmarks set by Saudi Aramco are generally used as a reference for LPG supply contracts from the Middle East to the Asia Pacific region. On the other hand, Sonatrach's prices serve as a benchmark in the Mediterranean and Black Sea regions, including Turkey.