Propane-Butane Prices Surge 30% in a Week on Exchange

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Propane-Butane Prices Surge in Russia Amid Global Market Turmoil

Since June 15, the prices of liquefied petroleum gases (LPG) have risen by 31.6% to 30,920 rubles per ton in the Urals and Siberia regions, according to the most relevant index, reaching their highest level since October 2024. In the European part of Russia, LPG prices have increased by 21.74% over the week, reaching 33,650 rubles per ton, according to data from the St. Pyotrsburg Exchange, as reported by Kommersant.

Market participants attribute the rise in wholesale prices for propane-butane to concerns over the situation with gasoline and diesel fuel, despite the absence of an actual shortage of LPG. Consumers fear that unplanned refinery maintenance could leave them without fuel, which is primarily used as automotive gas, in communal services, and in areas without pipeline gas supply.

The upward trend in propane-butane prices is driven not only by seasonal demand but also by its export appeal. The increase in LPG prices is linked to higher global quotations due to the conflict in the Middle East. There is no export ban on LPG, and the global market remains favorable for overseas deliveries.