The price of a butane cylinder in December is still limited by law. Although there are other methods to heat the house or cook, in Spain there are many consumers who continue to use this method in their homes. At the same time that inflation hits Europe and prices have skyrocketed for electricity, tobacco, shopping baskets or gasoline, butane cylinders maintain prices due to the limitation established by law. This is the price set for a vessel if you have to purchase one in these first days of December.
The Government of Spain limited its price through Royal Decree-Law 11/2022 of June 25, limiting the maximum price of the butane cylinder between 8 and 20 kilograms to 19.55 euros, a measure that Royal Decree-Law 5 /2023 was extended last June until December 31, 2023. In this sense, the price of a butane cylinder stands at 15.14 euros, which represents an increase compared to previous months.
How is the price of a butane cylinder calculated?
The price of the butane cylinder is calculated based on the cost of the raw materials (propane and butane) in the international market. However, it is not the only thing that intervenes. Other variables also come into play, such as the cost of freight (transportation) and the evolution of the euro-dollar exchange rate.
To the resulting figure, we must add VAT (21%) and the Special Tax on Hydrocarbons (IEH), which is 1.5 euros for each kilo. The price began to rise after Russia’s invasion of Ukraine, so the Government set a limit of 5% in the review. In this way, the butane cylinder cannot rise or fall more than the percentage established by law.
What about liquefied gas?
Bottled liquefied petroleum gas is a mixture of hydrocarbons, mainly butane compounds, that serves as an alternative to natural gas for energy consumption in pressure containers, especially in towns or urban centers without connection to the natural gas network.
Currently, 64.5 million LPG containers of different capacities are consumed annually. It is a fuel in decline, since from 2010 to 2021 the total consumption of LPG bottles has decreased by more than 25%.
