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Malaga
Monday, 18 November 2024, 14:17
The maximum retail price of a standard cylinder of butane gas in Spain will rise by 4.27% from Tuesday, to 16.61 euros, continuing the upward trend that began in September in the latest revision, according to a resolution published in the Official State Gazette (BOE).
Specifically, the increase in this latest revision is due to a rise in the price of raw materials of 9.05%, which is offset by the falls in freight prices (-1.73%) and the slight appreciation of the euro against the dollar (+0.70%), according to sources at the Ministry for Ecological Transition and the Demographic Challenge.
The maximum selling price of bottled liquefied petroleum gases (LPG) in containers of between 8 and 20 kilograms - the traditional butane cylinder - is not liberalised. Its value is revised bimonthly on the third Tuesday of the month, by Resolution of the Directorate General for Energy Policy and Mines.
This bi-monthly review is calculated on the basis of the cost of raw materials (propane and butane) on international markets, as well as the cost of freight (transport) and the evolution of the euro-dollar exchange rate. Moreover, this price revision, upwards or downwards, is limited to 5%, with the excess or shortfall in price accumulating for application in subsequent revisions.
Bottled liquefied petroleum gas (LPG) is a hydrocarbon mixture, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressurised containers, especially in towns or urban areas without connection to the natural gas network.
Currently, 64.5 million LPG cylinders of different capacities are consumed annually. This is a declining fuel, as from 2010 to 2021, the total consumption of bottled LPG has decreased by more than 25%.
On the other hand, on 5 November, the Ministry, understanding that in recent years there have been various situations that have had a significant economic impact, such as Covid-19 or the invasion of Ukraine, has begun a review of the formula that calculates the cost of marketing the cylinder.
As a result, in June it launched a prior public consultation to gather input from all interested parties, and on 5 November it launched a proposal for a ministerial order for public information, with which it plans to apply a calculation formula designed by the CNMC, updating it so that it reliably reflects the costs of the sector.
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