Algeria’s Sonatrach and Saudi Arabia’s state oil producer Aramco 2222.SE have raised official selling prices (OSPs) for liquefied petroleum gas (LPG) in October by 4-10% from September due to rising oil prices and global LPG demand, traders said.

Aramco’s October OSP for propane increased by $50 to $600 per tonne PRO-OFFCL-SA, while OSP for butane jumped by $55 to $615 per tonne BUT-OFFCL-SA.

Propane and butane are types of LPG with different boiling points.

LPG is mainly used as a fuel for cars, heating and as a feedstock for other petrochemicals.

Sonatrach raised its October OSP for propane by $30 to $560 per tonne PRO-OFFCL-DZ, while OSP for butane went up by $20 to $570 per tonne BUT-OFFCL-DZ.

Aramco’s OSPs for LPG are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region. Sonatrach’s OSPs for LPG are used as benchmarks for the Mediterranean, Black Sea region and Turkey.
Source: Reuters (Editing by Bernadette Baum)