Madrid, March 15 (EFE) .- The traditional butane canister cost from Tuesday up to 15.8 euros, representing a reduction of 9.7% over the current price, which stands at a maximum of 17.5 euros.
This reduction comes after the Government has remained frozen the price up to 17, 5 USD for almost two years and in an environment of falling crude oil prices in international markets.
The new price will be valid for two months, until May 19, when the government provides a new down.
The government sets the maximum selling price of butane liquefied petroleum gas (LPG) and propane “as the conditions of competition and competition in this market are not considered sufficient” except lighter bottles, which weigh less than 9 kilos, which are liberalized since July last year.
The system price revision was changed two years ago when every two months passed performed and a limitation up or down each time maximum 5%.
The government then set a maximum price for a year of 17.5 euros for traditional cylinder, which subsequently extended on several occasions despite the rise of the raw material, leading to the generation of a deficit in the field. This gap began to offset as oil prices fell in mid-2014.
In this context, the Government has decided to modify the system again repricing fundamentally to change the weighting of the different sources of raw materials in the formula, which in practice puts downward pressure on the price.
The Government also allows lower the price even though there is still a deficit in the sector, a possibility . prohibited under the previous legislation, and that this decline is more than 5% this time, a limitation that is reset for the next revision
Industry estimates that the deficit will be completely removed in the next two months – including May and June-, so once solved this gap “expect further reductions in the price of gas cylinder”.
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