Although the start of the week brought unseasonably higher temperatures in some parts of Spain, one thing that is “seasonably” guaranteed is that just when we need it most, the price of butane gas will increase, as is the case from today, rising by the maximum permitted amount.
The maximum retail price of the butane cylinder will rise by 5% starting this Tuesday, to 15.89 euro, in the second rise in price (coinciding with winter) after six consecutive two months of decline (oddly, at a time when it’s needed less!), according to the resolution published in the Official State Gazette (BOE).
This bimonthly review is calculated based on the cost of raw materials (propane and butane) in international markets, as well as the cost of freight (transport) and the evolution of the euro-dollar exchange rate. On the other hand, said price revision, upward or downward, is limited to 5%, with the excess or defect in price accumulating for application in subsequent revisions.
Specifically, the increase in this latest revision is allegedly mainly due to the increase in the cost of freight (+4%), despite motor fuel being cheaper, and the high price of raw materials, despite the fact that their price has decreased (-3.1%) as well as the appreciation that the euro has experienced against the dollar (+2.2%) in the last two months, as indicated by the Ministry for the Ecological Transition and the Demographic Challenge.
Royal Decree-Law 11/2022, of June 25, limited the maximum price of a butane cylinder between 8 and 20 kilograms to 19.55 euro, a measure that Royal Decree-Law 8/2023 extended last December. until June 30, 2024. This maximum price was last reached in the review of September 19, 2022.
The price quoted is for the regulated contract supply of a standard butane bottle, and the price is different (more expensive) when purchased in petrol stations as there it is sold into a “free market” arrangement and not regulated. It is usually cheaper to have the gas delivered to your home by your contracted provider.
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