Aramco Raises Propane Price for November 2026 Cargoes to $720 a Ton
Key Facts
Saudi Aramco set its contract price for propane in November 2026 at $720 a ton, up $40 month on month, according to Argaam. This means the announced price for cargoes contracted in November rose from the previous month's level. The announcement follows increases in liquefied petroleum gas prices during October, according to the previous month's data reported by Reuters via AlphaBrief. Aramco's price serves as a benchmark for liquefied petroleum gas supply contracts from the Middle East to Asia-Pacific, according to Reuters via MarketScreener. This gives the price significance beyond contracts linked to the company, as supply contracts in the region use it as a pricing reference.
Aramco had raised its propane price in October 2026 by $55 a ton to $680, and increased its butane price by $70 to $730, according to Reuters via AlphaBrief. Traders attributed those increases to higher oil prices and global demand, according to the same source. The comparison between October and November shows the monthly rise in the propane price continued, with the price increasing from $680 to $720 a ton. The November data cited here set the propane price and monthly increase, and do not include a new price for butane. The latest butane price in the available evidence therefore remains $730 a ton in October.
In Algeria, Sonatrach had raised its propane price in October by $110 a ton to $670, and its butane price by $140 to $750, according to Reuters via AlphaBrief. The percentage increases implemented by the Algerian company were higher than Aramco's increases in the same month. Sonatrach's prices are used as benchmarks for supply contracts in the Mediterranean and Black Sea region, including Turkey, according to Reuters via MarketScreener. This role places the Algerian price in a parallel regional context to the benchmark Aramco provides for Asia-Pacific markets. The available facts do not include Sonatrach's November prices or the size of any new monthly change.
Prices announced in September show lower levels before October's increases. That month, Aramco raised its propane price by $5 a ton to $625, and its butane price by $20 to $660, according to Reuters via MarketScreener. Sonatrach also raised its propane price by $20 to $560, and its butane price by $40 to $610. Both companies therefore recorded increases in all four product prices during September, before the larger increases announced for October. The comparison across months shows a rising price sequence for Aramco propane from September to October and then to November's price of $720 a ton.
Traders linked Aramco's September increase to stronger global demand for liquefied petroleum gas, according to a Reuters report published via MarketScreener. The October increase was attributed to higher oil prices and global demand, according to a Reuters report via AlphaBrief. These references identify the reasons traders cited for the increases, without offering an independent explanation for November's $40-a-ton increase. Propane and butane are types of liquefied petroleum gas and are used as fuel for vehicles and heating, and as inputs for petrochemical industries, according to Reuters via MarketScreener. These uses link producer prices to supply contracts for fuel, heating and petrochemical feedstocks.