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Price of standard butane gas cylinder in Spain drops as of today, and this is what you can expect to pay
Energy prices

Price of standard butane gas cylinder in Spain drops as of today, and this is what you can expect to pay

The price drop this 21 May, approved by the Spanish ministry for ecological transition, breaks a six-month string of increases

Raquel Merino

Malaga

Tuesday, 21 May 2024, 10:32

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The price of a standard cylinder of butane gas in Spain has dropped after three consecutive bi-monthly increases. As of today (21 May), it will now cost 16.14 euros, 53 cents less than the previous price.

The price drop, approved by the Spanish ministry for ecological transition, breaks a streak of rising prices. It seems the usual trend is returning: price increases in winter and decreases with the arrival of spring and summer.

Spain's Organisation of Consumers and Users (OCU) pointed out the decrease, compared to the previous price, does not exceed the entire permitted margin (5%), but remains at a drop of 3.2%. You have to go back to July 2019, almost five years ago, to see a similar case, without taking into account the freeze imposed in the summer of 2022 when butane reached 19.55 euros per cylinder, a record high.

However, it is still one euro more expensive than it was last November, just six months ago.

What is the reason for this latest drop?

After 11 two-monthly reviews - the cost of the butane cylinder is reviewed every two months on the third Tuesday of the month - this is the first review in which the limitation on the maximum pre-tax price of 19.55 euros established is not applied. This maximum price was last reached in the review of 19 September 2022.

The decrease in the last review is due to the fall in the price of raw materials (-6.6%), as well as the slight increase of the euro against the dollar (+0.5%) in the past two months and the cost of freight (+0.5%).

The OCU pointed out that, although the drop in raw materials is 6.6%, the price drop has only been 3.2% due to the large tariff deficit that had to be covered. Therefore, on this occasion, there is neither a tariff deficit nor a tariff surplus.

And what will happen in the next bimonthly review in July? The OCU said the absence of a tariff deficit or surplus will mean that this summer the price will only be influenced by the factors that determine the evolution itself. However, the consumers' organisation pointed out that, although the annual cycle of butane prices should help prices to fall, "we are in a very volatile situation, and anything can happen", especially if we take into account that the review carried out this May is the last one in which the government measure prohibiting the price of the cylinder to rise above 19.55 euros was applied. Therefore, from now on, this tool that limited the price of a basic necessity will no longer be available.

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