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The price of the ubiquitous standard canister of butane gas in Spain has fallen again for the second time this year. Last month it stood at 16.14 euros, but for these next two months (July and August) it will cost 5% less - 15.34 euros - according to a resolution published in the Official State Gazette (BOE).
The reduction in this latest price-check is due to the fall in the price of raw materials (-8.8%), the slight depreciation of the euro against the dollar (-0.1%) in the last two months and the increase in the cost of freight (+14.1%), as reported by sources from the Ministry for Ecological Transition and the Demographic Challenge.
The maximum selling price of bottled liquefied petroleum gases (LPG, in Spain typically butane or propane) in containers of between 8 and 20kg (the traditional butane cylinder sizes), is not part of a free market. Its value is revised bimonthly on the third Tuesday of the month by Resolution of the Directorate-General for Energy Policy.
This bimonthly review is calculated on the basis of the cost of the raw materials (propane and butane) on international markets, as well as the cost of freight (transport) and movements in the euro-dollar exchange rate. It should also be noted that this price revision, whether upwards or downwards, is limited to a 5% shift, with the excess or shortfall in price being passed on to apply in subsequent price changes.
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 for domestic use where there is no connection to the mains gas network.
Royal Decree-Law 11/2022 of 25 June limited the maximum price of butane cylinders of 8 to 20kg weight to 19.55 euros, a measure that the Royal Decree-Law of 8/2023 extended last December until 30 June 2024.
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