Algeria’s Sonatrach and Saudi Arabia’s Aramco 2222.SE have raised official selling prices (OSPs) for liquefied petroleum gas (LPG) in September by 13-22% from August due to rising oil prices and limited global LPG supply, traders said.

Aramco’s September OSP for propane increased by $80 to $550 per tonne, while OSP for butane jumped by $100 to $560 per tonne.

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 September OSP for propane by $60 to $530 per tonne PRO-OFFCL-DZ, while OSP for butane went up by $85 to $550 per tonne

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 Louise Heavens)