US LPG markets experienced a significant price surge in March 2026 as global supply disruptions intensified following the closure of the Strait of Hormuz. With Middle Eastern exports severely restricted, global NGL supply fell by 21%, tightening availability across major importing regions. This disruption redirected Asian buyers toward the United States, sharply increasing U.S. export activity and elevating domestic price benchmarks. Butane FD Texas rose 21.4%, while propane climbed 20%, reflecting the strongest monthly gains in years. Freight costs surged as VLGC rates from the U.S. Gulf Coast to Asia hit USD 172.75/mt, the highest in over two years, while propane export premiums reached Mont Belvieu +35 cents/gal, a record since 2021. Firm crude oil prices and widening naphtha spreads added further upward pressure. Despite some buyer resistance, strong Asian demand for LPG and constrained global supply kept the US market firmly bullish. Prices are expected to rise again in April as supply risks persist.
