MADRID, 17 Jul. (EUROPA PRESS) -
The maximum retail price of the butane cylinder will drop by 4.89% as of this Tuesday, July 18, to 15.18 euros, thus placing it at the lowest price recorded in the last year, according to the resolution published this Monday in the Official State Gazette (BOE).
This reduction is mainly due to the sharp fall in the price of raw materials (-25%) and, to a lesser extent, to the appreciation of the euro against the dollar (0.2%). Freight, on the other hand, has become 16.6% more expensive, sources from the Ministry for the Ecological Transition and the Demographic Challenge reported.
The reduction offsets the increase in the cost of marketing that is applied between this update and July 15, 2024, of 53.3 cents per kilogram, 4.8% higher than in the previous period.
The maximum sale price of bottled liquefied petroleum gases (LPG) in containers of between 8 and 20 kilograms, the traditional butane cylinder, is not liberalized. Its value is reviewed bimonthly on the third Tuesday of the month, by Resolution of the General Directorate for Energy Policy and Mines.
This bimonthly review 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. 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.
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 pressure containers, especially in towns or urban centers without connection to the natural gas network.
Currently, 64.5 million LPG containers of different capacities are consumed annually. It is a fuel in decline, since from 2010 to 2021 the total consumption of bottled LPG has fallen by more than 25%.
Royal Decree-Law 11/2022, of June 25, limited the maximum price of the butane cylinder between 8 and 20 kilograms to 19.55 euros, a measure that Royal Decree-Law 5/2023 extended last June until December 31, 2023. This maximum price was last reached in the review on September 19. Since then it has registered a drop of 22%.
