March 8, 2021

The butane cylinder lowers 5% and will cost 12.71 euros from Tuesday


MADRID

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The 12.5 kg butane cylinder, which consume about 8 million homes in Spain, will cost from this Tuesday, a maximum of 12.71 euros, 5% less (66 cents) than the current price, set in January, according to the resolution published today in the Official State Gazette (BOE). The price of butane is reviewed bi-monthly on the third Tuesday of the corresponding month, but the Government decided to freeze it after the outbreak of the Covid-19 crisis while the formula for its review would show increases.

The review is calculated depending on the cost of the raw material (propane and butane) in international markets, as well as the cost of freight (transport) and the evolution of the euro-dollar exchange rate.

In addition, the price variation, both upward and downward, is limited to 5%, accumulating the excess or defect of price for its application in subsequent reviews.

To mitigate the effects of the health crisis caused by covid-19, the Government suspended for three bimesters the maximum price revision system of bottled liquefied petroleum gases. As established by royal decree in March, the price was frozen if, in application of the revision, an increase corresponded, while if a decrease resulted, the formula would be applied following the usual procedure.

This is the case of the July review, according to the Ministry for Energy Transition, which explained that the decrease is due to the significant drop in international prices of raw materials compared to January (-38%).

Thus, from this Tuesday, the maximum price without tax for butane will become 82.5770 euro cents per kilogram, which yields a maximum price of sale to the public for the 12.5-kilo cylinder (the most common) of 12.71 euros, compared to 13.37 to which it was sold since January.

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