Saudi Aramco Cuts Propane, Butane Prices for June

Saudi Aramco said in a statement released on May 29 that it has cut its official selling prices for propane and butane for June 2025.

The price of propane was reduced by $10 per ton to $600, and the price of butane was reduced by $20 per ton to $570. The adjustments reflect changes in market conditions and continue the downward trend of last month.

Both propane and butane are classified as liquefied petroleum gases and are widely used in heating, vehicle fuel and petrochemical industries. Due to different boiling points, they are suitable for different industrial and domestic purposes.

Saudi Aramco's LPG prices are seen as the main benchmark for Middle Eastern supply contracts to the Asia-Pacific region. The global LPG market is undergoing a major shift as high tariffs on imported LPG in the United States have prompted Chinese buyers to replace US cargoes with Middle Eastern supplies.

The adjustment is expected to put downward pressure on the price and demand of shale gas by-products, bringing financial challenges to US shale gas producers and Chinese petrochemical companies. At the same time, this could increase interest in alternative feedstocks such as naphtha.

Middle Eastern suppliers are emerging as the main beneficiaries, filling the gap left by reduced U.S. exports to China. In addition, speculative buyers in Asian markets such as Japan and India are taking advantage of falling prices to secure better deals.