Saudi Aramco has increased its official selling prices (OSPs) for liquefied petroleum gas (LPG) for August, reflecting stronger demand across global energy markets. The Saudi Arabian state-owned energy giant raised the prices of both propane and butane by $40 per metric tonne, according to market traders.
Under the revised pricing, propane will be sold at $620 per tonne in August, while butane will be priced at $640 per tonne. The increase, ranging between 6% and 7%, signals improving market fundamentals and sustained demand for LPG across key importing regions.
LPG Prices Continues to Support Multiple Industries
Propane and butane, the two primary components of LPG, serve a wide range of industrial and commercial applications despite their differing boiling points. LPG is widely used as a transportation fuel, a heating source, and an essential feedstock for the petrochemical industry, making it a critical commodity across global energy and manufacturing supply chains.
Sonatrach Also Raises August LPG Prices
Saudi Aramco’s pricing move coincides with similar action by Algeria’s state-owned energy company, Sonatrach, which announced a sharp increase in its August LPG benchmark prices.
Sonatrach raised its propane OSP by $100 per tonne to $540, representing an increase of approximately 23%. The company’s butane price was increased by $90 per tonne to $570, marking a rise of about 19% compared with the previous month.
Key Benchmarks for Regional LPG Trade
Saudi Aramco’s official selling prices are widely regarded as the benchmark for LPG supply contracts across the Middle East and the Asia-Pacific region. Meanwhile, Sonatrach’s pricing serves as a key reference for LPG markets throughout the Mediterranean and Black Sea regions, including Türkiye.
The latest pricing revisions by both producers underscore firmer international demand for LPG and highlight the continued adjustment of benchmark prices as suppliers respond to evolving market conditions ahead of August deliveries.
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