Maximum retail price of butane bottle will become more expensive 4.27% from this Tuesday, up to 16.61 eurosthus continuing the upward trend that resumed last September during the last examination, according to a resolution published yesterday in the Official State Gazette (BOÉ).
Specifically, the increase in this latest revision is due to an increase in the price of raw materials of 9.05%, which is offset by reductions in freight prices (-1.73%) and the slight appreciation of the euro against the dollar (+0.70%), according to sources from the Ministry of Transition ecological and the demographic challenge.
The maximum selling price of liquefied petroleum gases (LPG) packaged in containers of between 8 and 20 kilograms -the traditional butane bottle- is not liberalized. Its value is reviewed bimonthly, on the third Tuesday of the month, by resolution of the General Directorate of Energy Policy and Mines.
This bimonthly review is calculated based on the cost of raw materials (propane and butane) on international markets, as well as the cost of freight (transport) and the evolution of the euro-dollar exchange rate. In addition, said price revision, upwards or downwards, is limited to 5%accumulating the excess or deficiency of price for application in subsequent examinations.
Bottled liquefied petroleum gas (LPG) is a mixture of hydrocarbons, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressurized containers, particularly in cities or urban centers without connection to the natural gas network.
Currently, 64.5 million LPG containers of different capacities are consumed each year. It is a fuel in decline since, from 2010 to 2021, total consumption of bottled LPG decreased by more than 25%.
Bottle Price Review
On the other hand, on November 5, the Ministry, understanding that in recent years there have been various situations that have caused a significant economic impact, such as the Covid-19 or the invasion of Ukrainebegan the revision of the formula that calculates the marketing costs of the cylinder.
To this end, in June it launched a prior public consultation to collect contributions from all interested parties and, on November 5, it made public a proposal for a ministerial decree, with which it plans to apply a calculation formula designed by the CNMC, update it so that it faithfully reflects the sector’s costs.
