Key Moments
- Saudi Aramco raised its December propane OSP to $495 per ton and butane to $485 per ton.
- Sonatrach increased its December propane OSP to $470 per ton and butane to $485 per ton.
- The moves reflect LPG price hikes ranging from 3.3% to 5.4% amid constrained global supply.
Middle East and North Africa Producers Raise December LPG OSPs
Saudi Aramco and Algeria’s Sonatrach have both raised their official selling prices (OSPs) for liquefied petroleum gas (LPG) for December, responding to tight conditions in the global market.
Saudi Aramco, the state-owned oil producer of Saudi Arabia, increased its December OSP for propane by $20 per metric ton, setting it at $495 per ton. The company also lifted its butane OSP by $25 per ton to $485 per ton.
In parallel, Algeria’s Sonatrach raised its December propane OSP by $15 per ton to $470 per ton, while its butane OSP was increased by $20 per ton to $485 per ton.
According to traders familiar with the situation, these adjustments translate into price increases of between 3.3% and 5.4%.
Comparison of December LPG Official Selling Prices
| Company | Product | December OSP | Increase |
|---|---|---|---|
| Saudi Aramco | Propane | $495 per ton | $20 per ton |
| Saudi Aramco | Butane | $485 per ton | $25 per ton |
| Sonatrach | Propane | $470 per ton | $15 per ton |
| Sonatrach | Butane | $485 per ton | $20 per ton |
Role of LPG and Regional Benchmarking
Propane and butane are distinct forms of LPG, differentiated by their boiling points. LPG is used in several applications, including as fuel for vehicles, for heating, and as a feedstock in petrochemical production.
Aramco’s OSPs are widely used as benchmarks for LPG supply contracts flowing from the Middle East to the Asia-Pacific region. Sonatrach’s OSPs play a similar role for the Mediterranean and Black Sea markets, including Turkey.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
