Saudi Aramco and Algerina Sonatrach have reduced official sales prices (OSP) for liquefied oil gas (LPG) for May between 0.8% and 10.9% compared to the previous month, as a result of the increase in world supply, operators reported on Monday.
The Aramco OSP for propane in May was reduced by $ 5, placing itself at $ 610 per metric ton, while the price of butane fell by $ 15, to $ 590 per ton, as detailed by the operators.
Propane and butane are types of LPG that differ from their boiling points.
The LPG is mainly used as car fuel and heating, as well as raw material for other petrochemical products.
Sonatrach cut its May OSP for propane at $ 60, up to $ 490 per ton, and for butane in $ 55, also up to $ 490 per ton, according to operators.
Aramco OSPs are used as a reference for LPG supply contracts from the Middle East to the Asia-Pacific region.
On the other hand, the Sonatrach OSPs serve as a reference for the Mediterranean market and the Black Sea, including Türkiye.
