Gas bottle prices dip below their set standards in May
In the realm of energy pricing, the European Regulatory Entity for Energy (ERSE) has been keeping a close eye on the bottled LPG market. The entity's analysis is instrumental in promoting transparency and ensuring fair practices within this sector.
According to the latest data, the efficient price with margins for a T3 bottle of propane in May 2025 was set at 31.22 euros, marking a decrease of 6.2% from the April 2025 price of 33.20 euros. This decrease was mirrored in the price of butane, which also saw a drop in April, albeit to a slightly lesser extent, with a 19.7% decrease.
The variations in prices do not constitute irregular commercial practices but are for monitoring and promoting transparency in the market. Consumers, therefore, have the freedom to choose between butane and propane, depending on their storage conditions and temperature.
The assessment of the bottled LPG market takes into account several factors, including sector concentration, diversity of commercial offers, and alignment with international quotations. In April, the diversity of commercial offers was evident, with Cepsa presenting the lowest average prices in the butane segment (around 2.635 euros/kg). In the propane segment, the "others" segment, which includes bottles sold in supermarkets, had prices around 2.818 euros/kg.
Interestingly, ERSE's analysis showed that Prio had the lowest average commercial offers in the propane segment in April (2.661 euros/kg), while OZ Energia presented the lowest offer in the butane segment (2.584 euros/kg) during the same period.
Regarding the future of gasoline prices, while there has been a steady decrease in recent weeks, no specific quantified "expected decrease" for next week was mentioned explicitly. The trend, however, is a continued slight decrease or stability, with small weekly declines typically in the range of a few cents per gallon according to the latest data and expert observation.
Despite regulatory changes like California's Low Carbon Fuel Standard starting on July 1, no significant immediate price hikes were observed, partly due to stable crude oil prices trading around $65 per barrel, which puts downward pressure on prices. The forecast models expect gasoline to trade at about $2.13 per gallon by the end of this quarter, a slight increase from the current $2.09, indicating only modest changes this near term.
It is crucial to note that the bottle reducer must be compatible for consumers to use butane and propane interchangeably, ensuring a wide range of choices for consumers in the bottled LPG market.
[1] Source for gasoline price data and forecasts. [2] Source for regional gasoline price data. [4] Source for regulatory and crude oil price data.
What about the impact of these price trends in the finance and energy sectors?The industry analysts are keen to monitor the effects of ERSE's regulatory actions on the overall finance and energy market.
