Dealers said Algerian energy company Sonatrach and Saudi Arabian Aramco cut official selling prices for July of LPG by 1-17% from June due to weak demand and excess global supplies.
Aramco reduced the official selling price for propane in June by $50-400 per ton, and for butane by $65-735 per ton.
Propane and butane are two types of LPG with different boiling points.
LPG is mainly used as a fuel for cars, heating and as a feedstock for the production of other petrochemicals.
Sonatrach cut official selling prices for propane for July by $5-400/ton and cut official selling prices for butane by $70-335/ton.
The official selling price of LPG set by Aramco is used as a benchmark for supply contracts from the Middle East to the Asia-Pacific region. As for the official selling price of Sonatrach, it is a benchmark for the Mediterranean, Black Sea and Turkey regions.
