Saudi Aramco and Algeria's Sonatrach have cut their official selling prices for liquefied petroleum gas (LPG) by between 5.6% and 14% for May compared to April due to increased supply in the market, traders said, according to Reuters.
Aramco cut the official selling price of propane for May by $35 to $580 per tonne and the official selling price of butane fell by $35 to $585 per tonne.
Propane and butane are two types of LPG and have different boiling points.
LPG is mainly used as a fuel for vehicles, for heating, and as a feedstock for other petrochemicals.
Sonatrach cut the official selling price for May for propane by $35 per tonne to $500 per tonne, and for butane by $80 per tonne to $490 per tonne.
Aramco's LPG official selling prices are used as a benchmark for supply contracts from the Middle East to the Asia-Pacific region, while Sonatrach's LPG official selling prices are used as a benchmark for the Mediterranean, Black Sea and Turkey.
