LPG (liquefied petroleum gas) refers to propane and butane, both produced as byproducts of crude oil refining and as natural gas liquids (NGLs) extracted during natural gas processing. In the US, Mont Belvieu, Texas is the primary wholesale pricing hub for propane, connected directly to major Gulf Coast export terminals. Internationally, Saudi Aramco and Sonatrach publish monthly official selling prices (OSP) that anchor term-contract pricing for butane and propane across Asia and Europe.
What Sets the LPG Price
LPG price is driven primarily by crude oil and natural gas prices, since propane and butane are co-products of both refining and gas processing rather than commodities with fully independent supply chains. That said, LPG can diverge meaningfully from the broader crude complex over shorter periods: US propane inventories running above or below their five-year average can push Mont Belvieu pricing in the opposite direction from crude and distillate benchmarks entirely, since the domestic Atlantic Basin supply-demand balance dominates over international crude-driven signals.
Seasonality is one of the strongest patterns in LPG pricing. Propane demand peaks in winter as residential heating consumption surges across North America and Europe, typically lifting Mont Belvieu prices from summer lows toward winter highs by a historical range of roughly 20-40%. According to the IEA Oil Market Report, global LPG demand continues to grow structurally, driven by petrochemical feedstock use in Asia and residential cooking and heating expansion in developing markets.
Internationally, Asian import markets, particularly India, Japan and South Korea, typically carry a premium to the US benchmark reflecting freight costs and regional supply competition. Term-contract pricing set by Aramco and Sonatrach’s monthly OSP announcements anchors much of this international trade, distinct from the Mont Belvieu spot market that drives US domestic pricing.
LPG Storage Economics
LPG storage is technically distinct from crude oil and refined product storage. Propane and butane must be stored either under pressure at ambient temperature, in pressurised spherical or bullet tanks, or refrigerated at atmospheric pressure in large refrigerated LPG tanks. The largest refrigerated LPG storage facilities operate at temperatures of approximately -42°C for propane and -5°C for butane, requiring specialised insulated tank infrastructure.
For LPG terminal operators, storage economics are driven by the winter-summer price spread. When summer LPG prices sit meaningfully below winter forward prices, a form of seasonal contango, operators can profit by injecting LPG into storage during the summer trough and withdrawing for winter delivery at higher prices. This seasonal carry dynamic is one of the most reliable storage plays in the petroleum products complex, given how consistently propane demand peaks each winter.
The Middle East is home to some of the world’s largest LPG export terminals, particularly in the UAE, Saudi Arabia, and Qatar. Middle East terminal operators handling LPG exports are directly exposed to both the VLGC freight market and term-contract pricing set by Aramco and Sonatrach. The oil storage terminal sector more broadly tracks LPG price movements as a leading indicator of NGL storage demand.
Checking the Current LPG Price
Mont Belvieu propane spot pricing is tracked via Trading Economics, with US retail figures published by the EIA. International butane and propane term-contract pricing is set monthly through Saudi Aramco and Sonatrach’s official selling price announcements. Given the seasonal swings in this market and the meaningful spreads between US wholesale, US retail, and Asian import pricing, check these sources directly for current figures rather than relying on a fixed number here. For OGSN’s own live-tracked natural gas benchmark, which shares some of the same supply dynamics as LPG through NGL processing, see the natural gas price page, updated monthly against confirmed benchmark data.
LPG Price Outlook
Structurally, Mont Belvieu LPG pricing should strengthen seasonally each year through Q3 and Q4 as the US propane heating season builds inventory demand from distributors and residential customers, with the reverse pattern into spring and summer as that demand tails off. International pricing depends more on Aramco and Sonatrach’s OSP-setting cycle and Asian import demand than on the US seasonal pattern alone. For LPG terminal operators, the seasonal storage incentive at Mont Belvieu is one of the more dependable plays in the petroleum products complex, and Middle East export terminal economics should be tracked against current OSP levels rather than a fixed reference point.
What is the current LPG price?
LPG prices fluctuate based on crude oil costs, natural gas liquid production, seasonal demand, and regional supply conditions. The Mont Belvieu propane benchmark — the primary US wholesale reference — is updated monthly on this page. For real-time Mont Belvieu prices, refer to the EIA or CME Group directly.
What is the difference between LPG, propane and butane?
LPG (Liquefied Petroleum Gas) is the commercial term for a mixture of propane and butane, which are both hydrocarbon gases that liquefy under moderate pressure. Propane (C3H8) has a lower boiling point and is preferred for outdoor and cold-climate applications. Butane (C4H10) has a slightly higher energy content per litre and is used in portable gas cylinders and warm-climate applications. Commercial LPG blends vary by country and season.
Why is the LPG price different in different countries?
The LPG price varies by region due to differences in local production, import infrastructure, government tax policy, and subsidy programmes. Countries that subsidise fuel — including several Middle East producers — maintain very low retail LPG prices. High-tax European nations and import-dependent markets like India face significantly higher retail prices despite similar wholesale commodity costs.
How does the LPG price affect tank terminal storage demand?
LPG storage economics are driven by the seasonal winter-summer price spread. When summer LPG prices are below winter forward prices, operators can profit by injecting propane into refrigerated storage tanks during the summer trough and withdrawing for winter delivery at higher prices. This seasonal carry trade drives utilisation at large refrigerated LPG storage facilities at major export hubs including Mont Belvieu, Ras Tanura, and Fujairah.
What is the LPG price in different currencies?
LPG is benchmarked in US dollars per gallon at the Mont Belvieu wholesale level globally, and per metric tonne for international trade. This page includes a currency conversion table covering EUR, GBP, JPY, AED, CNY, and INR, updated monthly from mid-market exchange rates.
What is the LPG price per metric tonne and MMBtu?
LPG is quoted per gallon in the US and per metric tonne for international shipping contracts. At the current Mont Belvieu propane price of $0.82/gallon, one metric tonne equates to approximately $682. This page includes a full unit conversion table covering gallon, litre, metric tonne, and MMBtu.
How current is the price data on this page?
Price data on this page is updated monthly. Figures reflect the most recent available Mont Belvieu benchmark data from the EIA. For real-time LPG price data, refer directly to CME Group or the EIA.