Aramco Raises Official Selling Prices for LPG in November

Saudi oil giant Aramco has increased the official selling prices for Liquefied Petroleum Gas (LPG) in November by 1 to 2% compared to prices in October due to rising demand.

This adjustment reflects a comparison to October’s prices, indicating a significant demand surge for the product.

Aramco’s official selling price for propane in November rose by $10 to $610 per ton. Meanwhile, butane’s price increased by $5, reaching $620 per ton. Both propane and butane are types of LPG with different boiling points.

Sonatrach’s Pricing Strategy

In contrast, Algeria’s Sonatrach reduced the official selling price of butane by 6% due to an oversupply in the Mediterranean region.

 Sonatrach maintained its official selling price for propane in November at $560 per ton. However, the price for butane dropped by $35, settling at $535 per ton.

Aramco’s official LPG selling prices serve as a benchmark for supply contracts from the Middle East to the Asia-Pacific region. Conversely, Sonatrach’s prices are standards for the Mediterranean, Black Sea, and Turkey regions.

LPG’s Primary Uses

LPG is primarily used as vehicle fuel, for heating purposes, and as a raw material in other petrochemical industries.

About Aramco

Saudi Aramco, officially the Saudi Arabian Oil Company, holds the title of the largest oil producer globally. Predominantly owned by the state, its headquarters are in Dhahran, Saudi Arabia. Its profitability surpasses that of major tech corporations, including Apple (AAPL) and Alphabet’s Google (GOOGL), making it the most profitable company in the world.

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