Saudi Aramco has held its official selling prices (OSPs) for liquefied petroleum gas (LPG) steady for May, keeping propane at $750 per metric ton and butane at $800 per metric ton. In contrast, Algeria’s Sonatrach moved to lower its May OSPs, cutting propane by $150 a ton to $700 and trimming butane by $20 a ton to $880.
The divergence in pricing actions between the two state producers comes as Sonatrach cited a market backdrop of higher global supply and weaker demand, a dynamic that the company said prompted reductions ranging from 2% to 18%.
Propane and butane are both components of LPG and have different boiling points. The fuels are commonly burned as automotive fuels, used for heating applications, and serve as feedstocks for various petrochemical processes.
Saudi Aramco’s pricing reads out as a regional reference for deliveries of LPG from the Middle East to the Asia-Pacific region. Sonatrach’s OSPs are used as benchmarks for trade flows into the Mediterranean and Black Sea basins, including sales into Turkey.
Summary of announced May OSPs:
- Saudi Aramco - Propane: $750 per metric ton; Butane: $800 per metric ton.
- Sonatrach - Propane: $700 per metric ton (down $150); Butane: $880 per metric ton (down $20).
The two companies' published OSPs function as pricing references rather than direct retail tariffs. Market participants and contract counterparties use the announcements when negotiating physical supply agreements for their respective regions.
This account is limited to the official price levels reported for May and the stated rationale for Sonatrach’s reductions. It does not include additional commentary or analysis beyond the companies’ published figures and the uses of LPG described above.