The new fees will remain in effect until January 17, when the next bimonthly review will be conducted
For months there has been a very high rise in energy prices. Electricity and gas are the most widely used energy sources in Spain, which is why the rise in prices has affected thousands of families. To the great relief of many citizens, it is known that the price of the butane gas cylinder is finally going to fall.
As published by the Government Gazette (BOE) on Monday, the price of the 12.5 kilogram butane gas cylinder will fall by 4.96%, that is, from next Wednesday, November 16, it will be possible to buy the cylinder for 18.58 euros . This price will be tentatively maintained until January 17, until the next bimonthly review.
The drop in the price of the butane bottle is due to the fact that this bi-monthly price of raw materials (propane and butane) has fallen by 10.0%, despite the fact that freight costs (transportation) have risen sharply (+24%) and the dollar , the reference currency on the international market, has continued to appreciate against the euro (+2.8%), according to sources from the Ministry of Ecological Transition and the Demographic Challenge.
The maximum selling price of bottled liquefied petroleum gas (LPG) in containers of 8 to 20 kilograms, the traditional butane gas bottle, has not been liberalized. Its value is reviewed every two months on the third Tuesday of the month by decision of the Directorate-General for Energy Policy and Mines. Bottled LPG is a mixture of hydrocarbons, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressurized containers, especially in cities or urban centers without connection to the natural gas network.
The bi-monthly revision of the price of butane is calculated based on the cost of the raw material (butane and propane) in international markets, as well as transportation costs and the evolution of the euro-dollar exchange rate. The price revision, up or down, is limited to 5%, with the excess or defect accumulated in the price for application in subsequent revisions.
Royal Decree-Law 11/2022 of 25 June adopting and extending certain measures to respond to the economic and social consequences of the war in Ukraine, to address situations of social and economic vulnerability, and for the economic and social recovery of the island of La Palma, froze the maximum pre-tax price of LPG in bottles between 8 and 20 kg, taking into account the provisions of the resolution of May 12, 2022 of the General Directorate of Energy Policy and Mines.
Currently, 68,000 LPG containers of various capacities are being consumed, of which 53 million fall below the maximum regulated price (78%). It is a fuel in decline, as from 2009 to 2018 the total consumption of bottled LPG fell by 20%.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
