Saudi Aramco and Sonatrach raise LPG prices for October

• Saudi Aramco raised October prices by $55/ton to $680/ton for propane and $70/ton to $730/ton for butane (9-11% increase)
• Algeria's Sonatrach implemented steeper increases of $110/ton to $670 for propane and $140/ton to $750 for butane (20-23% increase)
• These official selling prices serve as regional benchmarks: Aramco's for Asia-Pacific contracts and Sonatrach's for Mediterranean and Black Sea markets including Turkey

Summary: Saudi Aramco and Sonatrach Raise LPG Prices for October

Key Price Increases:

Saudi Aramco, Saudi Arabia's state oil producer, raised October official selling prices (OSPs) for liquefied petroleum gas (LPG) by 9-11%, driven by rising oil prices and increased global demand. Algeria's Sonatrach implemented steeper increases of 20-23% for the same period.

Specific Pricing Data:

• Saudi Aramco: Propane OSPs increased $55/metric ton to $680/ton; butane rose $70/ton to $730/ton
• Sonatrach: Propane OSPs jumped $110/ton to $670/ton; butane climbed $140/ton to $750/ton

Market Significance:

These OSPs serve as critical regional benchmarks. Saudi Aramco's prices reference contracts supplying LPG from the Middle East to Asia-Pacific markets, while Sonatrach's prices benchmark Mediterranean and Black Sea regions, including Turkey.

Product Context:

LPG, comprising propane and butane with different boiling points, is primarily used as automotive fuel, heating fuel, and petrochemical feedstock. The price increases reflect tightening global energy markets and rising demand fundamentals.

Market Implications:

The substantial price hikes, particularly Sonatrach's 20%+ increases, signal strengthening LPG market conditions and could impact downstream costs for consumers and industries reliant on LPG in Asia-Pacific, Mediterranean, and Black Sea regions. The price adjustment comes amid broader energy market pressures, as evidenced by concurrent concerns over inflation and rising Treasury yields affecting broader markets.

Companies Mentioned: Saudi Aramco (Saudi Arabia), Sonatrach (Algeria)

Date: October 1, 2026 (prices effective October 2026)