SONATRACH AND SAUDI ARAMCO CUT MARCH LPG PRICES BY 1-3%

Saudi Arabia's Aramco and Algeria's Sonatrach have cut their March official selling prices (OSP) of Liquefied Petroleum Gas (LPG) by 0.9-3.2 percent from the previous month due to lower oil prices and weak global LPG demand.

Aramco’s March propane OSP was cut by $20 to $615 per metric ton, while butane prices fell by $20 to $605 per ton.

Propane and butane are types of liquefied gases with different boiling points.

LPG is mainly used as a fuel for vehicles and heating and as a feedstock for other petrochemical industries.

Sonatrach cut its March propane offer by $5 to $560 per ton and butane by $15 to $585 per ton, according to traders.

Aramco’s OSPs are used as a benchmark when negotiating contracts for the supply of Liquefied Natural Gas (LNG) from the Middle East to the Asia-Pacific region.

Sonatrach’s OSP is used as a benchmark for the Mediterranean and Black Sea region, including Turkey.