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Liquified Petroleum Gas Price Trend and Forecast

⟳ Weekly Update
|
Historical Data Since 2015
|
Forecast for 2026

liquified petroleum gas Markets Covered:

beBelgium
brBrazil
cnChina
egEgypt
frFrance
inIndia
idIndonesia
jpJapan
mxMexico
nlNetherlands
phPhilippines
thThailand
krKorea
usUnited States
aeUnited Arab Emirates
saSaudi Arabia
qaQatar

Global liquified petroleum gas Price Trend, Analysis and Forecast​

Moving into Q1 2025, the LPG market in the FOB Jebel Ali prices remained relatively stable, with Propane prices at $661.53 USD/MT, reflecting a 0.12% increase from Q4 2024, while Butane prices stood at $658.97 USD/MT, showing a 0.19% increase from Q4. This slight upward movement was primarily due to consistent export demand from Asia and Europe, as well as steady domestic consumption. The UAE’s strong production infrastructure and strategic supply chains played a crucial role in maintaining market balance, preventing any sharp fluctuations while ensuring reliable availability of both Propane and Butane. 

Liquified Petroleum GasTrend Analysis: Q2 2025

Moving into Q1 2025, the LPG market in the FOB Jebel Ali prices remained relatively stable, with Propane prices at $661.53 USD/MT, reflecting a 0.12% increase from Q4 2024, while Butane prices stood at $658.97 USD/MT, showing a 0.19% increase from Q4. This slight upward movement was primarily due to consistent export demand from Asia and Europe, as well as steady domestic consumption. The UAE’s strong production infrastructure and strategic supply chains played a crucial role in maintaining market balance, preventing any sharp fluctuations while ensuring reliable availability of both Propane and Butane. 

In Q1 2025, the LPG market in India remained largely stable, with CIF Nhava sheva Propane prices inching up to $688/MT, a 0.29% increase, and Butane rising slightly to $686/MT, up by 0.44% from Q4. Export demand from Asia stayed firm, and domestic consumption remained steady in both household and commercial sectors. With logistics normalized after the busy festive quarter and weather-related demand still present in certain northern regions, the market avoided major fluctuations. India’s well-managed supply chain and strategic sourcing agreements played a key role in keeping the market balanced and prices controlled as 2025 began. 

Liquified Petroleum Gas Trend Analysis: Q4 2024

By Q4 2024, LPG prices of FOB Jebel Ali saw a notable upward shift, with Propane prices rising to $660.72 USD/MT, reflecting a 7.90% increase from Q3, and Butane prices climbing to $657.69 USD/MT, marking a 10.01% increase from Q3. This surge was primarily attributed to increased demand from Asian markets ahead of the winter season, as countries aimed to secure ample heating fuel supplies. Furthermore, logistical challenges and limited shipping availability contributed to heightened transportation costs, indirectly supporting price growth. The UAE’s strategic export position and efficient production capabilities helped meet the robust demand, maintaining stable market dynamics despite the price hike. 

In Q4 2024, the Indian LPG market saw a notable recovery in prices, largely due to rising demand during the festive season and increased heating fuel requirements in northern regions. CIF Nhava sheva Propane prices surged to $686/MT, up by 7.02%, while Butane climbed to $683/MT, reflecting a 9.11% rise compared to Q3. This price increase was supported by stockpiling from distributors, seasonal consumption peaks, and tighter global shipping capacity due to year-end trade congestion. India’s consistent import volumes, combined with steady domestic production, allowed the market to meet the high demand while adjusting prices accordingly. 

In Q3 2024, the LPG market in the FOB Jebel Ali showed a slight stabilization, with Propane prices at $612.32 USD/MT, reflecting a 2.28% decrease from Q2. Similarly, Butane prices settled at $597.83 USD/MT, marking a 4.72% decrease from Q2. This price dip was primarily driven by reduced global demand and weaker downstream consumption in key importing regions. Additionally, geopolitical uncertainties and economic slowdowns in some Asian and European markets led to cautious procurement strategies, slightly dampening buying interest. Despite this, the UAE maintained steady production and reliable export operations, preventing any abrupt price drops while ensuring balanced supply. 

In Q3 2024, the LPG market in India remained relatively steady, with a slight decline in pricing amid softening global demand. CIF Nhava sheva Propane was priced at $641/MT, showing a 0.93% decrease from Q2, while Butane was reported at $626/MT, down by 3.25%. Domestically, the monsoon season slowed down transportation and distribution activities in several regions, causing a temporary dip in demand from rural and semi-urban areas. Meanwhile, some industries switched to alternate fuels, impacting the overall LPG offtake. Despite these challenges, regular imports and a stable export supply chain ensured market balance without any sharp fluctuations. 

In Q2 2024, however, the market faced a shift. Propane prices in the FOB Jebel Ali declined to USD 626.63/MT, showing a drop of 5.09% from Q1, while butane prices fell to USD 627.47/MT, indicating a 6.48% decline. This decline in LPG prices was largely due to advancements in the production process, improving efficiency and increasing supply, which reduced market pressure. Additionally, the overall demand for LPG saw a drop due to the seasonal slowdown in consumption and technological innovations that reduced dependence on traditional LPG applications. 

In Q2 2024, the Indian LPG market experienced a slight correction in prices, as overall demand moderated with the change in season. CIF Nhava sheva Propane prices dropped to $647/MT, reflecting a 4.57% decline, and Butane prices stabilized at $647/MT, down by 6.10% from Q1. The dip was mainly due to reduced household consumption in post-winter, along with improved efficiency in domestic refineries and higher inventory levels. Additionally, increased global production and exports, especially from the Middle East, added to the abundant supply scenario, easing pressure on FOB India prices. Exporters were able to meet Indian demand without significant delays, contributing to this price stabilization. 

In Q1 2024, the global LPG market, particularly in major Countries as the USA, UAE, Saudi Arabia, and Qatar, saw a bullish trend. This was driven by rising Propane and Butane prices, as well as increasing demand from sectors like petrochemicals and residential use. In FOB Jebel Ali, LPG prices reflected this upward movement, with Propane prices at USD 660.28/MT, showing a slight increase of 1.53% compared to the previous quarter. Butane prices also rose to USD 670.85/MT, reflecting a 1.58% increase from the prior period. The Middle East and African markets experienced strong demand for LPG due to regional construction growth and energy consumption needs. 
 
 

In Q1 2024, the LPG market in India witnessed a bullish trend, driven by rising prices of both Propane and Butane, in line with global market movements. The demand from domestic sectors like residential cooking fuel, small-scale industries, and petrochemicals remained strong during the winter season and early festive activities. CIF Nhava sheva Propane prices stood at $678/MT, showing a 3.20% increase from the previous quarter, while Butane prices rose to $689/MT, marking a 3.30% rise. This upward movement was supported by higher import activity from major exporters like the UAE and Qatar, combined with increased LPG bottling and distribution in preparation for festive season demand across India. 

liquified petroleum gas Parameters Covered: 

  • Unprocessed propane
  • Crude oil
  • unprocessed Butane
  • USA
  • UAE
  • Saudi
  • Qatar
  • LPG (Propane) Cylinders
  • Industrial Fuel
  • Aerosol Propellant
  • Petrochemical Feedstock (Production of Propylene → Polypropylene plastics)
  • India
  • China
  • Belgium
  • Netherlands
  • Thailand
  • Spain
  • France
  • Mexico
  • Brazil
  • Japan
  • South Korea
  • Egypt
  • Indonesia
  • Philippines

Historically, several events have caused significant fluctuations in Liquified Petroleum Gas prices

  • COVID-19 pandemic (2021-2019):  the LPG market saw major fluctuations due to the COVID-19 pandemic. In 2020, lockdowns caused a sharp drop in demand, leading to a steep decline in LPG prices. By 2021, as economies recovered and industries resumed, energy demand surged, driving prices upward. Supply chain disruptions added to price volatility and regional shortages. 
  • OPEC Production Cuts (2018): The Organization of the Petroleum Exporting Countries (OPEC) agreed to cut oil production to stabilize prices. As LPG is a byproduct of oil refining and natural gas production, these cuts influenced LPG availability, leading to higher prices due to tighter supply. 
  • Hurricane Harvey Impact (2017): Hurricane Harvey struck the U.S. Gulf Coast, severely affecting oil refineries and natural gas processing plants. As a major producer of LPG, the disruption in U.S. supply chains led to a temporary spike in LPG prices globally. The Gulf Coast region is a hub for LPG exports, and the hurricane caused bottlenecks that caused short-term price increases. 
  • Oil Market Oversupply (2016): Global oil markets experienced a period of oversupply, primarily due to increased production in the U.S. and reluctance among OPEC nations to cut output. This surplus in oil production led to lower prices for oil and its byproducts, including LPG. LPG prices dropped as supply remained high while demand growth was slow, particularly in the early months of 2016. 
  • Global Crude Oil Price Crash (2015): In 2015, global crude oil prices plummeted due to oversupply and weakened demand, primarily caused by the rapid increase in U.S. shale production and OPEC’s decision not to reduce output. Since LPG is closely tied to oil production, the price of LPG also fell sharply. This period marked one of the most significant downturns in LPG prices, with a long-term impact on the global energy market. 

 

These events underscore the LPG market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

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Historically, several events have caused significant fluctuations in Liquified Petroleum Gas prices

  • COVID-19 pandemic (2021-2019):  the LPG market saw major fluctuations due to the COVID-19 pandemic. In 2020, lockdowns caused a sharp drop in demand, leading to a steep decline in LPG prices. By 2021, as economies recovered and industries resumed, energy demand surged, driving prices upward. Supply chain disruptions added to price volatility and regional shortages. 
  • OPEC Production Cuts (2018): The Organization of the Petroleum Exporting Countries (OPEC) agreed to cut oil production to stabilize prices. As LPG is a byproduct of oil refining and natural gas production, these cuts influenced LPG availability, leading to higher prices due to tighter supply. 
  • Hurricane Harvey Impact (2017): Hurricane Harvey struck the U.S. Gulf Coast, severely affecting oil refineries and natural gas processing plants. As a major producer of LPG, the disruption in U.S. supply chains led to a temporary spike in LPG prices globally. The Gulf Coast region is a hub for LPG exports, and the hurricane caused bottlenecks that caused short-term price increases. 
  • Oil Market Oversupply (2016): Global oil markets experienced a period of oversupply, primarily due to increased production in the U.S. and reluctance among OPEC nations to cut output. This surplus in oil production led to lower prices for oil and its byproducts, including LPG. LPG prices dropped as supply remained high while demand growth was slow, particularly in the early months of 2016. 
  • Global Crude Oil Price Crash (2015): In 2015, global crude oil prices plummeted due to oversupply and weakened demand, primarily caused by the rapid increase in U.S. shale production and OPEC’s decision not to reduce output. Since LPG is closely tied to oil production, the price of LPG also fell sharply. This period marked one of the most significant downturns in LPG prices, with a long-term impact on the global energy market. 

 

These events underscore the LPG market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Why PriceWatch?

PriceWatch is your trusted resource for tracking global liquified petroleum gas price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the liquified petroleum gas market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.

In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence liquified petroleum gas prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely liquified petroleum gas market data.

Track PriceWatch's liquified petroleum gas price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Data Collection and Sources​

  • Real-Time Market Data:  Price-Watch collects real-time pricing data from a wide range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions for Liquified Petroleum Gas (LPG). 
  • On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including LPG producers, suppliers, traders, and end-users, across major LPG production hubs. This localized intelligence is crucial for understanding the unique market dynamics in different regions. 
  • Supply Chain Monitoring: We monitor the entire LPG supply chain, from raw material availability (such as Propane and Butane) to production and distribution channels. Our monitoring includes tracking feedstock prices, refinery outputs, production capacities, and transportation logistics.

Event Tracking and Impact Analysis​

  • Geopolitical Tensions: Price-Watch continuously tracks global geopolitical developments, such as conflicts, trade disputes, and sanctions, that can significantly impact LPG prices. Our analysis assesses the potential disruptions to supply chains and how these events influence short- and long-term price trends. 
  • Natural Disasters and Climate Events: We evaluate the impact of natural disasters, such as hurricanes, earthquakes, and winter storms, on LPG production facilities. Particularly in regions like the U.S. Gulf Coast, these events can disrupt supply, leading to price spikes. Price Watch factors these risks into our forecasts and supply outlooks. 
  • Energy Transition and Regulatory Shifts: With the global shift toward renewable energy, Price-Watch keeps track of changing environmental regulations, carbon policies, and the push for cleaner energy alternatives. These developments can influence LPG demand and pricing as markets adjust to lower reliance on fossil fuels. 

Production Capacity and Supply Analysis

  • Current Production Monitoring: We maintain an extensive database of global LPG production facilities, tracking their operational status, maintenance schedules, and output levels. This enables us to provide accurate assessments of current LPG supply availability. 
  • Future Capacity Projections: Price-Watch forecasts future LPG production capacities by analyzing new plant constructions, refinery expansions, and technological innovations. These projections help anticipate supply trends and assess potential impacts on price stability. 

Demand Forecasting

  • Sectoral Demand Analysis: Price-Watch conducts in-depth analysis of demand trends across key sectors, including residential, industrial, and transportation. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments affecting LPG. 
  • Global Demand Dynamics: Our research considers regional demand variations and their impact on global LPG pricing. This includes understanding shifts in demand due to changes in manufacturing bases, energy policies, and environmental regulations. 

Pricing Model Development

  • Dynamic Pricing Models: Price-Watch uses advanced econometric models to forecast LPG prices. Our models incorporate real-time data, historical trends, and projected market conditions. These models are constantly refined to improve accuracy and forecasting ability. 
  • Scenario Analysis: We conduct scenario-based analyses to evaluate potential future market conditions. Our scenarios include best-case, worst-case, and most likely outcomes, helping clients prepare for various market scenarios and make strategic decisions. 

Reporting and Client Support

  • Comprehensive Reports: Our clients receive detailed reports that include current LPG price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations for market players. 
  • Ongoing Support: Price-Watch provides continuous updates and personalized support to our clients, ensuring they have the most up-to-date information for making informed decisions. Our experts are available to discuss specific market trends and provide tailored advice based on current developments. 

 

This research methodology ensures that Price-Watch delivers the most accurate, timely, and actionable LPG pricing assessments, helping our clients stay ahead of market trends and make informed business decisions. 

Liquified Petroleum Gas price provided by PriceWatch is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for liquified petroleum gas. PriceWatch disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

The price of LPG is affected by several factors, including crude oil prices, production levels, and seasonal demand fluctuations. Additionally, geopolitical events, weather conditions impacting production, and changes in transportation costs can all influence LPG pricing. It’s essential for procurement heads to keep these factors in mind when assessing market trends.

The balance between supply and demand plays a crucial role in determining LPG prices. When demand rises, such as during cold weather or peak cooking seasons, prices tend to increase. Conversely, if there is an oversupply due to increased production or decreased demand, prices may drop. Monitoring supply and demand trends can help procurement heads make informed purchasing decisions.

LPG prices can vary significantly by region due to differences in production costs, transportation logistics, and local market conditions. For example, regions with abundant natural gas reserves may experience lower prices compared to those reliant on imports. Procurement teams should evaluate regional pricing differences and adjust their sourcing strategies accordingly to optimize costs.

The future price outlook for LPG depends on various factors, including global economic conditions, energy policies, and shifts in fuel consumption patterns. As demand for cleaner fuels grows, LPG may see price increases. Procurement heads should stay informed by following market reports, considering long-term contracts, and diversifying suppliers to mitigate potential risks associated with price volatility.

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