Russian LPG prices halve

MOSCOW: Domestic prices of liquefied petroleum gas (LPG) in Russia halved in December from the previous month due to an influx of the fuel, exports of which have been curbed by European sanctions, Reuters calculations showed.

The European Union’s sanctions against Russia’s LPG took effect on Dec. 20. The restrictions were proposed last year by Poland, one of Russia’s largest LPG importers.

LPG, or propane and butane, is mainly used as fuel for cars, heating and to produce other petrochemicals.

A sharp rise of LPG supplies to the domestic market led to a collapse in wholesale prices in Russia to around 14,000 roubles ($140) per metric ton in December from 28,000 roubles at the end of November, according to Reuters calculations based on trading sources and data from a local commodity exchange.

Published in Dawn, December 26th, 2024