Saudi Aramco has announced a reduction in the official selling prices (OSPs) for propane and butane for the month of March 2025. The new prices are established at $615 per tonne for propane and $605 per tonne for butane, as reported in a recent statement from the company.

Propane and butane are both classified as liquefied petroleum gases (LPG), which are widely utilized for various applications including home heating, vehicle fuel, and as essential feedstock within the petrochemical sector.

These gases, while similar, have distinct boiling points, rendering them suitable for various specific uses.

The pricing set by Aramco serves as a crucial benchmark for contracts that facilitate the supply of LPG from the Middle East to the Asia-Pacific region.

The shifts in pricing can often reflect the underlying supply and demand dynamics influenced by seasonal consumption patterns.

Typically, propane demand sees a significant increase during winter months due to its role as a primary heating source.

Such seasonal variations in demand usually result in price fluctuations, particularly as colder weather intensifies consumption needs.

Consequently, price adjustments, like those announced for March, reflect the ongoing balance between supply levels and consumer demand in the market.