Saudi Aramco Keeps Propane, Butane Prices Stable

The Saudi Arabian Oil Co., also known as Saudi Aramco, kept its December contract prices unchanged month on month at US$635 per tonne, according to an official statement

The company also maintained butane prices for the month at US$630 per tonne.

Propane and butane are types of liquefied petroleum gas with different boiling points. LPG is commonly used as a fuel for vehicles, heating, and as a feedstock for various petrochemicals.

Aramco’s OSPs for LPG are used as a benchmark for contracts supplying the product from the Middle East to the Asia-Pacific region.

In winter, the demand for propane rises significantly due to its use in heating homes, which can lead to higher prices if supply struggles to keep up.

Such fluctuations are a normal part of the market and are expected during colder months. The increase in prices reflects the basic economic principle of supply and demand, with higher demand resulting in higher costs.