The government on 6 August gave in-principle approval to directly purchase 5,000 tonnes of liquefied petroleum gas from Speed Marketing Corporation through the international market.
The procurement is intended to meet emergency demand, increase the government’s share in the LPG market and help stabilise supplies.
The LPG will contain between 35 and 40 percent propane and between 60 and 65 percent butane. It will be purchased on a cost and freight basis at the Saudi Aramco Contract Price plus $97 per metric tonne.