Saudi Arabia’s state oil producer Saudi Aramco and Algeria’s Sonatrach have increased their official selling prices for liquefied petroleum gas (LPG) for September, with traders attributing the higher rates to stronger demand in global markets. Saudi Aramco raised its September LPG prices by between 1% and 3%, while Algeria’s Sonatrach increased its prices by between 4% and 7%. The latest adjustments have raised benchmark costs for propane and butane, two major components of LPG that are widely used across transportation, heating and industrial applications.
Saudi Aramco increased its September official selling price for propane by $5 per metric ton, taking the rate to $625 per ton. The company also raised its butane price by $20 per ton to $660 per ton. The increases represent a higher cost for buyers relying on Middle Eastern LPG supplies and reflect the movement in international market conditions. Traders said the adjustments were linked to increased demand, highlighting the continued sensitivity of LPG prices to changes in global consumption and supply conditions.
Sonatrach, Algeria’s state-owned energy company, also announced higher LPG prices for September. Its official selling price for propane increased by $20 per ton to $560 per ton, while the price of butane rose by $40 per ton to $610 per ton. The increases by Sonatrach were higher in percentage terms than those announced by Saudi Aramco, with the company lifting its LPG prices by between 4% and 7% for the month.
Propane and butane are both forms of LPG, although they have different boiling points and are used in a range of applications. LPG is commonly used as fuel for vehicles and heating, while it is also an important feedstock for the petrochemical industry. Changes in the prices of propane and butane can therefore have implications beyond household and transport fuel markets, particularly for industries that use LPG-related products and feedstock as part of their operations.
Saudi Aramco’s official selling prices hold particular importance for LPG trade because they are widely used as reference prices for contracts supplying LPG from the Middle East to the Asia-Pacific region. The company’s monthly pricing decisions can therefore influence commercial negotiations and pricing arrangements across one of the world’s major LPG trading corridors. The September increase comes as higher global demand contributes to upward pressure on LPG costs, potentially affecting buyers and downstream industries across the region.
Sonatrach’s pricing also carries significance for regional markets, as its official selling prices serve as benchmarks for LPG transactions in the Mediterranean and Black Sea regions. These benchmarks also cover markets including Türkiye, making the Algerian producer’s monthly price decisions relevant to buyers and traders operating across these regions. The September increases in propane and butane prices could consequently affect regional purchasing costs and market expectations.
The latest price changes from both producers highlight the continuing role of major state-owned energy companies in international LPG markets. With Saudi Aramco serving as an important pricing reference for Middle Eastern supplies and Sonatrach providing a benchmark for Mediterranean and Black Sea markets, their monthly official selling prices are closely monitored by traders. The September increases indicate that stronger global demand is contributing to higher LPG costs across key international supply regions.
For global energy markets, the higher September LPG prices add another factor for businesses and consumers that depend on propane and butane for fuel, heating and industrial purposes. While the increases differ between Saudi Aramco and Sonatrach, both producers have moved prices upward for the month, reflecting current market conditions and demand levels. The latest adjustments are expected to remain an important reference point for LPG buyers and traders as they assess supply costs and international market developments during September.
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