Benchmark LPG prices surge as Aramco and Sonatrach lift April rates
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Saudi Aramco and Algeria’s Sonatrach have sharply raised their official selling prices for liquefied petroleum gas for April, with increases ranging from 38 percent to 80 percent, according to traders cited by Reuters. Aramco raised propane by $205 to $750 per metric ton and butane by $260 to $800, while Sonatrach lifted propane by $325 to $850 and butane by $400 to $900 per ton.
The move carries weight well beyond the producers themselves. Aramco’s LPG prices are used as a benchmark for supply contracts from the Middle East to Asia Pacific, while Sonatrach’s prices serve as reference points across the Mediterranean and Black Sea region, including Turkey. That makes the April increase relevant to regional trade flows, contract pricing and downstream supply costs.
Reuters said the jump comes amid tight global supply and a wider energy shock linked to the war in the Middle East. The report added that some Gulf LPG production capacity has been damaged and that propane and butane shipments from countries in the region have been suspended since early March because of the closure of the Strait of Hormuz, a route that had accounted for about 30 percent of global seaborne LPG exports.
Taken together, the April pricing reset signals a more fragile LPG market, one increasingly shaped by geopolitical risk and disrupted supply. For importing markets, that can quickly feed into higher costs for fuel, heating and petrochemical inputs.
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Tahani Elghazaly5252 Posts
