Butane gas price drops almost maximum permitted 5 percent again

The regulated price of a butane gas cylinder has dropped 4.9% again, now standing at 15.96 euro, the lowest price recorded in the last twelve months, according to a resolution published in the Official State Gazette (BOE).

Specifically, the maximum RRP of the butane cylinder has decreased by 0.83 euro, to 15.96 euro, compared to the 16.79 euro in force since March 21.

The maximum RRP of liquefied petroleum gases (LPG) in containers of 8 to 20 kilograms (the traditional butane cylinder) is reviewed bimonthly on the third Tuesday of the month.

This revision is calculated based on the cost of raw materials (propane and butane) in international markets, as well as the cost of freight (transportation) and the evolution of the euro-dollar exchange rate.

Specifically, this reduction is mainly due to the sharp fall in the price of raw materials (-25.8%) and, to a lesser extent, to the appreciation of the euro against the dollar (+0.9%), which is cushioned due to the existing surplus, which increases from 0.97 euro/bottle to 1.76 euros/bottle.

On the other hand, said price revision, upwards or downwards, is limited to 5%, accumulating the excess or defect in price for its application in subsequent revisions.

Royal Decree-Law 20/2022 has limited the maximum price before taxes of bottled LPG between 8 and 20 kilograms until June 30, 2023, taking as a reference the price set by the resolution of May 12, 2022, of 19.55 euro.

It is worth noting, as previously explained, that the regulated price only refers to contracted supply of butane gas bottles delivered to your home. The price of the canisters sold in petrol stations is not regulated by this mechanism as they are sold under a free market agreement.