Published by Global Banking & Finance Review®
Posted on January 24, 2025
1 min readLast updated: January 27, 2026
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Saudi Aramco and Sonatrach have lowered LPG prices for January due to weaker demand, affecting propane and butane markets globally.
MOSCOW (Reuters) - Oil producer Saudi Aramco and Algeria's Sonatrach lowered January's official selling prices (OSPs) for liquefied petroleum gas (LPG) by between 1.6% and 6% from December because of weaker demand for the fuel, traders said on Thursday.
Aramco's January OSP for propane decreased by $10 to $625 a metric ton while butane dropped by $15 to $615 a ton, the traders said.
Propane and butane are types of LPG with different boiling points.
LPG is used mainly as fuel for cars, heating and as a feedstock for other petrochemicals.
Sonatrach cut its January OSP for propane by $35 to $550 a ton and for butane by $25 to $560 per ton, traders said.
Aramco's OSPs are used as a reference for contracts to supply LPG from the Middle East to the Asia-Pacific region.
Sonatrach's OSPs are used as benchmarks for the Mediterranean and Black Sea region, including Turkey.
(Reporting by Reuters; Editing by David Goodman)
The article discusses the reduction of LPG prices by Saudi Aramco and Sonatrach for January due to weaker demand.
The price cuts were implemented due to weaker demand for LPG in the market.
Aramco's prices impact the Asia-Pacific region, while Sonatrach's prices affect the Mediterranean and Black Sea regions.
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