Aramco, Sonatrach cut selling price of liquefied petroleum gas during May

Traders said that Saudi Aramco and Algeria’s Sonatrach reduced official selling prices for liquefied petroleum gas by between 5.6% and 14% for May compared to April prices due to increased supply in the market.

According to Reuters, Aramco reduced the official selling price of propane for the month of May by $35 to $580 per ton, and the official selling price of butane decreased by $35 to $585 per ton.

Propane and butane are two types of liquefied petroleum gas and have different boiling points.

LPG is mainly used as a fuel for cars, heating and as a feedstock for other petrochemicals.

Sonatrach reduced the official selling price for May for propane by $35 per ton to $500 per ton, and for butane by $80 per ton to $490 per ton.

Aramco’s official selling prices for liquefied petroleum gas are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region, while Sonatrach’s official selling prices for liquefied petroleum gas are used as a standard for the Mediterranean, the Black Sea, and Turkey.