The maximum retail price of a standard 12.5 kg bottle of butane gas has risen by nearly 5 per cent to 17.83 euro from yesterday, Tuesday, 21st July, following the latest bi-monthly price revision published in the Official State Gazette (BOE).
The price increase, which sees the cost rise from 17.16 euro, is driven by several combined factors. Chief among them is the expiration of the temporary Value Added Tax (VAT) reduction on 30th June, which had kept VAT at a reduced rate of 10 per cent before returning to the standard 21 per cent rate. To cushion the impact, a new temporary reduction in the Hydrocarbons Tax of 3.75 euro per tonne has been introduced under Royal Decree-law 18/2026.
According to the calculation formula used by the Directorate General for Energy Policy and Mines, international freight costs surged by 51.88 per cent, alongside a slight 0.32 per cent depreciation of the euro against the US dollar. These increases were partially offset by a 33.35 per cent drop in the international price of raw materials, as well as contributions to the National Energy Efficiency Fund.
Under current regulations, bi-monthly adjustments to bottled liquefied petroleum gas (LPG) are capped at a maximum fluctuation of 5 per cent in either direction, with any excess carried over into future reviews. Without this 5 per cent cap and the accompanying tax mitigation measures, the final consumer price would have reached 18 euro. The resulting deficit will instead be absorbed into subsequent price reviews.
Bottled LPG, primarily consisting of butane, serves as an alternative energy source to piped natural gas, particularly for households and rural communities without access to the main distribution grid. Consumption of bottled gas reached 57 million containers across various sizes in 2025.
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