LPG Pricing
What are the main factors that determine the price we pay for LPG?
In January 1991, the Federal Government deregulated the wholesale price of LPG. As part of this process, Australian LPG prices move to reflect the fact that LPG is an internationally traded commodity, and thus influenced by international prices and factors such as the value of the Australian dollar. Therefore, Australian producers trade LPG at international prices (in US dollars).
The current international price used in the market is called the Saudi Aramco Contract Price (Saudi CP) and is expressed in US dollars per metric tonne. The Saudi CP is set on the propane and butane commodity prices, and published on the first business day of the month and remains fixed for the remainder of that month.
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