Sonatrach Raises LPG Prices for November

Algeria’s Sonatrach and Saudi Arabia’s Aramco have raised their official selling prices (OSPs) for liquefied petroleum gas (LPG) for November, with increases ranging from 23% to 40% for Sonatrach and from 5.9% to 6.8% for Aramco, amid stronger seasonal demand and tight global supplies.

Reuters quoted traders on Friday as saying that Sonatrach had increased its official selling price for propane by $155 per tonne to $825, while raising the price of butane by $300 to $1,050 per tonne.

Meanwhile, Saudi Aramco raised its propane price by $40 per tonne to $720 and its butane price by $50 to $780 per tonne.

Aramco’s official selling prices serve as benchmarks for contracts supplying LPG from the Middle East to the Asia-Pacific region, while Sonatrach’s prices are used as reference benchmarks in markets bordering the Mediterranean and Black Seas, including Turkey.

Propane and butane are the main components of LPG, which is used as a fuel for vehicles and heating, as well as a feedstock in the petrochemical industry.