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The traditional butane gas cylinder continues to be an alternative for heating homes in Spain, particularly in the context of the high costs of using mains gas or electricity. However, the market for such cylinders is shrinking according to data from the Ministry for Ecological Transition and the Demographic Challenge (Miteco). The data shows that sales have fallen by 50 per cent in the last two decades, to 700,000 tonnes per year, and in particular in rural areas.
This shrinking market has generated "a progressive closure of distribution agencies, a decapitalisation of the companies present and a reduction in investments, which could affect the supply and quality of the service offered to end consumers", according to distribution companies.
Now the government has decided to update the way in which the price paid by consumers for this product is calculated and to respond to calls by the Spanish federation of liquefied petroleum gas distributors (Fedglp).
The department headed by Sara Aagesen published on Thursday 6 March in the Official State Gazette (BOE) a ministerial order updating this system of automatic determination of maximum sales prices before taxes.
According to the ministry's calculations, if the new methodology had been applied in January's review, the increase would be equivalent to 1.36 euros per cylinder, 8.1% more than the current price, but less than a third of the 26% increase in the CPI recorded since 2015, the year of the last update.
Fedglp has called for an increase of 1.80 euros per cylinder in order to cover operating costs such as salaries, transport and fleet maintenance, which are essential to ensure the sustainability of the home delivery service, an essential public service.
Updating marketing costs will be passed on to consumers progressively, with a maximum of 20 cents per cylinder per review every two months, while maintaining a cap on the increase of five per cent.
In the last review on 21 January the price increased by 0.18% and reached 16.64 euros. On 18 March it will change again, but respecting the established 5% limits. In other words, the price cannot go above 17.47 euros or below 15.80 euros.
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