The traditional butane cylinder – the one that weighs 12.5 kilograms – will become cheaper by 4.94% starting this Tuesday, so it will cost a maximum of 14.43 euros, compared to the 15.18 euros set by the previous review from last July, as can be seen from the resolution published this Monday by the Official State Gazette (BOE). Compared to the maximum price recorded a year ago, the butane cylinder has become 26% cheaper.
The Government attributes this reduction to the surplus generated in recent months, which has made it possible to cushion the increase in costs caused above all by the rise in raw material prices (propane and butane). The review of the maximum sales price of packaged liquefied petroleum gases (LPG) in containers of between 8 and 20 kilos occurs bimonthly, since it is not liberalized.
Its update is calculated based on the cost of raw materials in international markets, as well as the cost of freight and the evolution of the euro-dollar exchange rate. The price revision, upward or downward, is limited to 5%, with the excess or defect in price being accumulated for application in subsequent revisions.
Bottled liquefied petroleum gas is a mixture of hydrocarbons, mainly composed of butane, that serves as an alternative to natural gas for energy consumption in pressure containers, especially in towns or urban centers without connection to the natural gas network. It is estimated that 64.5 million LPG containers of different capacities are consumed each year. It is a fuel in decline, since from 2010 to 2021 the total consumption of bottled LPG decreased by more than 25%.
In order to protect families against the energy crisis aggravated by the war in Ukraine, in June of last year the Government decided to freeze the maximum sales price of the butane cylinder at 19.55 euros, a measure that has been extended until December 31, 2023.
