Riyadh: Saudi Aramco has announced a decrease in the official selling prices of propane and butane for July 2025, reflecting changing global market conditions.

The oil company set the price of propane at $575 per tonne and butane at $545 per tonne, both representing a $25 reduction from the previous month's rates.

This adjustment continues a downward trend driven by shifts in supply-demand dynamics.

Propane and butane, classified as liquefied petroleum gases (LPG), serve critical purposes such as fueling heating systems, transportation, and petrochemical production.

Aramco's monthly pricing is regarded as a key benchmark for LPG shipments from the Middle East to the Asia Pacific region.

The global LPG market is experiencing a realignment due to China's shift away from US imports, particularly in response to significant tariffs imposed on American products.

Consequently, Middle Eastern suppliers are gaining prominence as they fill the void left by declining US exports to China.

Meanwhile, American cargoes are being redirected towards Europe and other parts of Asia.

This market reshuffling is putting downward pressure on global LPG prices, which in turn weakens demand for US shale byproducts.

Both American shale producers and Chinese petrochemical firms are affected by these trends.

Additionally, there is a growing interest in alternative feedstocks such as naphtha.

Middle Eastern exporters, including Saudi Aramco, are capitalizing on the shift to secure greater market share.

Buyers in Asia, such as Japan and India, are also leveraging the softer prices to negotiate more favorable supply contracts.