The Spanish Government
Commission for Economic Affairs has approved a new system for automatically
setting maximum prices for bottled LPG, and has set a new price ceiling for 12.5
kg. bottles of butane at 1,309 pesetas.
In line with its ongoing policy
to stagger the increase of selling prices to cover rises in international
feedstock prices, Repsol YPF has set the price of butane gas bottles at 1,135
pesetas, which is 174 pesetas below the authorised maximum price. The
price of bottled LPG has been frozen at 1,115 pesetas per bottle since October
1999.
The maximum price for bottled LPG (butane and propane) is
calculated via a formula based on three components: the international
feedstock price, freight costs, and marketing, distribution and bottling
costs. Formerly, the price was revised on the second Tuesday of each
month. Under this new formula, there will be a half-yearly update,
calculating the arithmetic average of international feedstock prices over the
preceding twelve months for each of the six monthly periods of
application.
This new system provides greater price-setting stability in
a market such as LPG, which is known for its high volatility.
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