Saudi Aramco raises LPG OSPs by up to 3% for June, Sonatrach cuts prices by 18% and 31%

• Saudi Aramco raised June OSPs to $760/ton for propane (+$10) and $820/ton for butane (+$20), representing increases of approximately 1-3%
• Sonatrach slashed prices to $575/ton for propane (-$125, down 18%) and $610/ton for butane (-$270, down 31%) citing higher Mediterranean supply
• The price divergence highlights regional market differences, with Saudi prices benchmarking Middle East-to-Asia contracts while Algerian prices guide Mediterranean and Black Sea markets including Turkey

Market Summary: Saudi Aramco and Sonatrach Adjust LPG Prices for June

Key Price Movements

Saudi Aramco raised official selling prices (OSPs) for liquefied petroleum gas (LPG) in June 2026:

• Propane: increased $10/metric ton (approximately 1% rise) to $760/ton
• Butane: increased $20/ton (approximately 3% rise) to $820/ton

Sonatrach (Algeria's state oil company) implemented substantial price cuts:

• Propane: decreased $125/ton (18% reduction) to $575/ton
• Butane: decreased $270/ton (31% reduction) to $610/ton

Market Context

The contrasting price movements reflect divergent regional supply dynamics. Sonatrach's steep price reductions are attributed to higher supply levels in the Mediterranean market, while Saudi Aramco's modest increases suggest tighter conditions or stronger demand in Asia-Pacific markets.

Product Information

LPG, which includes propane and butane (differentiated by boiling points), serves multiple applications including automotive fuel, heating, and petrochemical feedstock production.

Market Implications

These OSPs function as critical pricing benchmarks for different geographical markets:

• Saudi Aramco: Reference standard for Middle East-to-Asia-Pacific LPG contracts
• Sonatrach: Benchmark for Mediterranean and Black Sea regions, including Turkey

The significant price divergence—Saudi Arabia raising prices while Algeria cuts them dramatically—indicates regional market fragmentation and highlights supply-demand imbalances across different trading hubs. The 31% butane price reduction by Sonatrach represents particularly aggressive positioning to clear excess Mediterranean supply.

Effective Date: June 2026