Wedoany.com Report-Dec.2, Saudi Aramco and Algeria's Sonatrach have both announced higher official selling prices (OSPs) for liquefied petroleum gas (LPG) cargoes loading in December 2025, reflecting tighter availability in the international market, according to traders on Monday.

The logo of Saudi Aramco is seen during the Adopt AI International Summit at the Grand Palais in Paris, France, November 26, 2025.

Saudi Aramco raised its December contract prices by $20–25 per metric ton. The new OSP stands at $495 per ton for propane (up $20) and $485 per ton for butane (up $25), representing increases of approximately 4.2% and 5.4% respectively from November levels.

Sonatrach followed a similar direction, lifting its December OSPs by $15–20 per ton. Propane is now priced at $470 per ton and butane at $485 per ton, equivalent to rises of 3.3% for propane and 4.3% for butane.

The adjustments mark the first consecutive monthly increases since mid-2025 and come amid reduced export volumes from several key producers, combined with steady seasonal demand for heating and petrochemical feedstocks.

Aramco's OSPs serve as the primary benchmark for term and spot LPG contracts supplying the Asia-Pacific region, where the majority of Middle Eastern volumes are delivered. Sonatrach’s prices are widely referenced for shipments to the Mediterranean, Black Sea, and northwest Europe, including major importing countries such as Turkey.

Propane and butane, the two main components of LPG, are used extensively as clean-burning fuels for residential heating and cooking, automotive applications, and as raw materials in the production of olefins and other petrochemical derivatives.

Market participants noted that the upward revisions were broadly in line with expectations, given recent strength in related energy commodities and limited spare production capacity entering the northern hemisphere winter period. Spot prices in both the Far East and Mediterranean regions have traded at premiums to the new OSP levels in recent weeks, supporting the price adjustments.

The higher OSPs are expected to flow through to end-user costs in importing nations across Asia, Europe, and North Africa during the first quarter of 2026. Traders anticipate that additional supply from scheduled maintenance turnarounds and new facilities coming online later in the year may ease pressure on availability in the coming months.

Both companies review and announce LPG contract prices monthly, providing a transparent reference that facilitates trading and long-term supply planning across global markets. Further pricing updates for January 2026 loading are scheduled for release in early January.