GPL Prices Rise as Sonatrach Leads Regional Market

Algeria's national company Sonatrach has substantially raised its official sales prices for liquefied petroleum gas (GPL) destined for November 2026 cargos, a move that encompasses both propane and butane. According to specialized data platforms, the price of Algerian propane increased by $155 per tonne, reaching $825 from $670 in October, marking a nearly 23% rise. Butane saw an even more pronounced surge, with its price jumping by $300 per tonne to $1,050 from $750 the previous month, an increase of approximately 40%. This revaluation significantly exceeds the adjustments implemented by Saudi Arabian giant Aramco during the same period, whose propane price rose by 5.9% to $720 per tonne, and butane by 6.8% to $780 per tonne.

Sonatrach's pricing structures are recognized as crucial benchmarks in the global GPL market, particularly dictating trends for the Mediterranean basin and the Black Sea, including significant markets such as Turkey. This contrasts with Saudi Aramco's tariffs, which serve as a primary reference for supply contracts from the Middle East to the Asia-Pacific region. The current price hike by Sonatrach occurs amidst a global landscape characterized by rising crude oil prices, intensified worldwide energy demand, persistent supply tensions, increased maritime freight costs, and seasonal fluctuations.

In terms of production, Algeria emerged as the leading member country of the Organization of Arab Petroleum Exporting Countries (OAPEC) for GPL in 2024, achieving an average volume of 293,800 barrels per day. While this figure represents a slight decrease compared to the 305,400 barrels per day produced in 2023, the nation comfortably maintains its regional leadership, significantly outpacing most other member states. GPL, commonly known as bottled gas, is a vital energy source primarily composed of propane and butane, extensively used for cooking, heating, automotive fuel, and as a critical raw material in the petrochemical industry.