Saudi Arabia Keeps LPG Prices Steady in September Amid Global Oversupplies

Saudi Arabia Keeps LPG Prices Steady in September Amid Global Oversupplies

Meyer Berger 26-Sep-2025

In September 2025, the Liquified Petroleum Gas (LPG) market in Saudi Arabia remained stable with Butane Ex Work Dhahran and Propane Ex Work Dhahran prices unchanged from August 2025. Saudi Aramco froze its selling prices when a bearish market prevailed in Asia, along with high inventory in the US. The supply from Saudi Arabia was steady from constant production, along with supply from gas projects on near near-term basis. Demand for the downstream propane and butane was low as the winter season had not arrived yet. At the same time, feedstock crude oil prices have seen volatility, with prices under pressure due to the view of supply increase by OPEC+ members and weaker demand due to the probabilities of a global economic slowdown. Meanwhile, there may be even greater international sanctions placed on Russian oil exports, which could have an impact on the oil trade in the near term, and so could the LPG prices.

Key Takeaways:

  • Aramco’s September LPG Contract Prices remained the benchmark for Gulf-to-Asia exports, anchoring market sentiment in the region.
  • Bearish fundamentals continued in Asia, and weak PDH margins keep suppressing LPG demand.
  • Lower U.S. FOB propane cargo values and multi-million barrel inventory highs keep oversupply talk alive in the LPG market.
  • A drop in crude oil feedstock prices and weak exports added to the LPG bearish market fundamentals.

According to ChemAnalyst, the bearish fundamentals in Asia and oversupply from the US might be challenged by a seasonal restocking in Qx, causing LPG prices in Saudi Arabia to strengthen in October xxxx. 

The Saudi Arabia liquefied petroleum gas (LPG) market went into September xxxx with no changes in the Contract Prices (CPs) of Saudi Aramco from August. Propane was fixed at USD xxx a tonne Ex Work Dhahran, and butane at USD xxx a tonne, the official statement said. The move followed a steep USD...

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LPG

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