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Algeria's Sonatrach and Saudi Arabia's state oil producer Aramco have raised official selling prices (OSPs) for liquefied petroleum gas (LPG) in September by 3-13 per cent from August due to rising global LPG demand, traders said.
Aramco's September OSP for propane was increased by $15 a metric ton to $605 a ton and butane was up by $25 to $595 a ton.
Propane and butane are types of LPG with different boiling points. LPG is mainly used as a fuel for cars and heating as well as a feedstock for other petrochemicals.
Sonatrach raised its September OSP for propane by $35 a ton to $590 a ton, while the OSP for butane increased by $65 a ton to $565 a ton.
Aramco's OSPs for LPG are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region.
Sonatrach's OSPs for LPG are used as benchmarks for the Mediterranean, Black Sea region and Turkey. -Reuters