On January 20, 2025, the Official State Gazette (BOE) will return to update the price of the butane cylinder. Currently, the price of the 12.5 kilo orange bottle is set at 16.61 euros, according to what is published by the BOE. Now, the price of the cylinder will be modified again, but respecting the established 5% limits. That is, its cost will range between 15.77 and 17.44 euroswithout being able to exceed these values.
The change in the price of the butane cylinder is regulated under the Order IET/389/2015. According to this regulation, the price must be reviewed bimonthly, that is, every two monthsand the update takes effect on Tuesday of the third week of the corresponding month. Thus, although the new price of the butane cylinder will be published on January 20, 2025, it will not be until a day later when the measure comes into force, that is, on Tuesday, January 21.
Now, to understand why the butane cylinder goes up or down in price, it is necessary to know how the price is established and what factors are taken into account according to the regulations.
Change in the price of the butane cylinder
He butane cylinder price is regulated in Spain to protect consumers against sudden increases that could affect their economy. An example of this was Russia’s invasion of Ukraine, which caused fuel prices to skyrocket.
For this reason, the government established that this price will be reviewed every two months and the modifications come into force on Tuesday of the third week of the corresponding month. The factors that influence the price are:
- International pricing of raw materials: Butane and propane, the main components of liquefied petroleum gas (LPG), are subject to international market prices. This means that its cost may vary depending on global fluctuations.
- Transportation costs: The transfer of these gases from production points, such as Algeria or the North Sea, to homes involves significant expenses, known as freight, which are added to the final price.
- Dollar-Euro exchange rate: Since international transactions are usually carried out in dollars, the conversion to euros directly affects the cost of raw materials and their transportation.
- Previous price adjustments: If in past reviews the calculated theoretical price did not coincide with the applied one, the accumulated difference is incorporated into future reviews to balance the system.
For this reason, the price of the standard bottle will remain until January 20, since the last review was on November 18, 2024, when the price was set at 16.61 euros and would remain until January 20. of 2025.
How is the new price of the butane cylinder calculated?
The price of the butane cylinder is calculated based on several factors established in current regulations (which we have detailed previously). First, determine the maximum price without taxespublished every two months in the Official State Gazette (BOE). This base price depends on the international price of butane and propane, the main components of liquefied gas, as well as the transportation costs (freight) and the evolution of the exchange rate between the euro and the dollar, since these transactions are carried out in dollars. In addition, the accumulated imbalances of previous prices are incorporated to adjust the differences between theoretical and applied values in previous reviews.
Once established the maximum price without taxes, taxes are calculated corresponding. To this base price is added the special hydrocarbon taxwhich is equivalent to 1.5 cents per kilogram (15 euros per ton), and VAT is finally appliedcurrently set at a 21%. For example, for a 12.5 kg cylinder, the maximum price before tax is multiplied by its weight, the excise tax is added and the VAT is calculated, thus obtaining the final price that consumers pay.
Evolution of the price of the butane cylinder
Since 2000, the price of a butane cylinder has been increasing. In January of In 2000, its cost was only 2.33 euros. Between 2015 and 2021, the price ranged between 11.27 and 17.50 euros, showing an increase over the decades. In 2021, prices began to rise steadily in each bimonthly review, reaching the historical record of 19.55 euros in May 2022, the highest price recorded until then.
Faced with this situation and the impact of the energy crisis, the Government decided to intervene to protect families, establishing a cap of 19.55 euros through the Royal Decree-Law 11/2022. This limit remained in effect until June 2023, at which time the price was adjusted again according to the regulated review formulas. Since then, the price has fluctuated in accordance with international quotes, the cost of freight and the evolution of the euro-dollar exchange rate, always within established norms.
In parallel, “light” cylinders, whose weight is less than 9 kg, have maintained an unregulated price, varying according to the commercial decisions of distribution companies such as Repsol, Cepsa and Disa Gas. These cylinders, although more expensive, offer advantages such as lower weight, greater safety and a gas consumption meter, which makes them a practical option for many consumers.