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To compensate for the price increase, The Government approved in October an improvement of the thermal social bonus from the 2021 budgets
The maximum price of the 12.5-kilogram butane cylinder will increase by 4.91% starting tomorrow, January 18, up to 17.75 euros, According to a resolution published this Monday in the Official State Gazette (BOE).
This rise is due to the high value of raw material prices despite having fallen by almost 9.4% compared to the previous two months, to which is added the increase in freight rates (+35.2%) and the depreciation of the euro once morest the dollar (-2.8%).
To compensate for the price increase, The Government approved in October an improvement of the thermal social bond charged to the 2021 budgets, with an additional 100 million euros, up to 202.5 million.
Under this measure, compensation for vulnerable consumers, which depends on the climate zone in which they live, has increased from a minimum of 25 euros to 35 euros, the equivalent of regarding two cylinders, and from a maximum of 123 euros to 370 euros.
The maximum sale price of bottled liquefied petroleum gases (LPG) in packages of between 8 and 20 kilograms (the traditional butane cylinder) is not liberalized.
Its value is reviewed bi-monthly on the third Tuesday of the month through Resolution of the General Directorate of Energy Policy and Mines, according to the methodology established by current regulations.
The bi-monthly price review is calculated depending on the cost of the raw material (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 revision of the price, upwards or downwards, is limited to 5%, accumulating the excess or defect of price for its application in later reviews.
Liquefied Petroleum Gas (LPG) packaging is a mixture of hydrocarbons, mainly composed of butane, which serves as an alternative to natural gas for energy consumption in pressurized containers, especially in towns or urban centers without connection to the natural gas network.
Nowadays, 68 million LPG containers of different capacities are consumed, of which 53 million are subject to the maximum regulated price (78%). It is a fuel in decline: from 2009 to 2018 the total consumption of bottled LPG has decreased by 20%.
Pipeline liquefied gas drops by 1.5%
It has also been published in the BOE the new maximum price of piped liquefied petroleum gas (LPG). As of tomorrow, Tuesday, the bill for an average customer will drop by 1.5% compared to current prices, thus adding its second consecutive decline.
This decrease is due to the monthly drop in the international price of propane (-4.71%) and, to a lesser extent, to the depreciation of the euro once morest the dollar (-0.97%), offset in part by the slight rise in the international price of butane (+0.37%) and the increase in freight rates (+ 6.45%), sources from the Department led by Teresa Ribera have indicated.
LPG supply activity by pipeline consists of the supply of propane gas through a distribution network fed from a tank where the gas is stored in liquid form.
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This modality allows a constant supply to the customer, billed by meter, without the need for a prior order, which makes piped LPG an alternative to the supply of natural gas in small towns or urban centers far from the natural gas network.
This activity is also not liberalized. Their prices are regulated by the General Directorate of Energy Policy and Mines. The rate is made up of two terms: the term associated with marketing costs, which is reviewed annually in July, and the variable term associated with the price of the raw material (butane and propane), which is updated monthly from of their international quotes and freight rates.
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