The IEA sharply lowered its 2026 global oil demand outlook, citing the escalating Mideast conflict and elevated energy prices. The agency now projects a significantly steeper year-on-year decline in consumption than previously forecast, warning that market tightening and demand destruction are accelerating.
U.S. benchmark and international crude benchmarks both fell as investors took profits following prior gains on the announcement of sweeping new U.S. sanctions targeting Iran. The 'Operation Economic Outcast' campaign imposes global sanctions with no exemption for China, creating uncertainty around Iranian oil flows. Prices remain volatile as markets assess whether the sanctions will successfully isolate Iran's energy sector or be circumvented.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| LPG | USA | FOB | USD 360.00/MT | August 2026 |
| LPG | Saudi Arabia | FOB | USD 620.00/MT | August 2026 |
| LPG | Germany | CIF | USD 473.59/MT | August 2026 |
| LPG | China | FOB | USD 930.97/MT | August 2026 |
| LPG | Canada | CIF | USD 267.02/MT | August 2026 |
| LPG | USA | FOB | USD 366.27/MT | July 2026 |
| LPG | Saudi Arabia | FOB | USD 580.00/MT | July 2026 |
| LPG | Germany | CIF | USD 499.90/MT | July 2026 |
| LPG | China | FOB | USD 885.09/MT | July 2026 |
| LPG | Canada | CIF | USD 267.02/MT | July 2026 |
Stay updated with the latest LPG prices, historical data, and tailored regional analysis
In Saudi Arabia, the average price of LPG rose from ~USD 580.00/MT (FOB) in July to ~USD 620.00/MT in August, an increase of ~6.9%. In China, the average price climbed about 5.2%, from ~USD 885.09/MT (FOB) to ~USD 930.97/MT. Middle East benchmarks had been cut sharply for July as global supply improved, but rose again in August on higher demand and edged up further in September. Gulf supply remained severely restricted, as Middle East exports to Asia fell to about 1.17 million tonnes in August, against roughly 4 million tonnes a month before the conflict. Renewed US strikes on Iran ended hopes of a temporary Hormuz shipping corridor, while attacks on a key Red Sea terminal further cut flows and higher Panama Canal fees raised shipping costs from the US. In China, National Bureau of Statistics data showed domestic LPG prices rising sharply, although weak demand was narrowing import margins. India increased purchases of US LPG to replace lost Gulf supply, while US East Coast propane stocks fell to 15% below the five-year average by mid-September.
Analyst Insight
According to Procurement Resource, in the near term, LPG prices are likely to stay elevated as Gulf exports remain constrained and winter demand approaches, though softer Asian buying could limit sharp increases.
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Asia
In China, the prices of LPG were ~RMB 6.31/kg in April and ~RMB 6.75/kg in the subsequent month. The LPG price curve witnessed a ~7.0% increase in the first two months of Q2’26. The rise was mainly driven by tighter Middle Eastern cargo availability and higher delivered import costs into Asia. Replacement supply from the United States helped reduce shortage risk but longer voyages and constrained export logistics kept landed costs elevated. However, the price increase was capped by weak petrochemical demand, as propane dehydrogenation and steam-cracker users reduced operating rates due to poor margins and feedstock shortages. Indian household and industrial demand also weakened as high import costs affected affordability and availability.
Europe
In Germany, the prices of LPG were ~EUR 0.54/kg in April and ~EUR 0.51/kg in the following month, showing a ~5.2% decrease. European LPG prices softened because local demand was weaker than Asian import-driven pricing pressure. Lower crude-linked sentiment, softer industrial usage, and limited heating demand reduced buying urgency. Europe did not face the same direct Gulf replacement pressure as Asia, so weaker downstream offtake had a clearer impact on prices. Autogas, petrochemical, and commercial demand remained cautious, limiting any pass-through from global supply disruption.
North America
North America remained the main balancing supplier for the global LPG market. EIA reported that U.S. propane production increased by 125,000 barrels per day, or 5%, during 2025, and expected another 4% increase in 2026. EIA also forecast inventories to reach nearly 112 million barrels in October 2026, supporting export availability. Two U.S. Gulf Coast projects were expected to add a combined 660,000 barrels per day of LPG export capacity, improving medium-term supply flexibility.
Analyst Insight
According to Procurement Resource, in the near term, LPG prices may stay sensitive to Middle Eastern shipping flows and Asian import demand. Rising U.S. supply and weak petrochemical demand may cap further gains.
Liquefied petroleum gas or better known as LPG is a mixture of hydrocarbon gases. It is flammable in nature. LPG is most widely used for household purposes, for example in cooking, or as a fuel for heating. It is replacing CFCs or chlorofluorocarbons rapidly, as it is less harmful for environment and has a lower impact on ozone layer when compared to CFCs. Its primary constituents are propane and butane, while natural gas contains lighter methane and ethane. Commercially, the product is mainly derived from fossil fuels.
Cooking, Rural heating, Internal combustion engines and motor fuel, Aerosol propellants and refrigerants, Gasoline, Farming, Power generation
Liquefied petroleum gas, Liquid petroleum gas (LP gas)
Gazprom PAO, Royal Dutch Shell Plc, Exxon Mobil Corporation, Total SA, BP Plc
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs. Procurement Resource tracks LPG prices for more than 150 countries across the globe.
LPG can be obtained from natural gas via its processing. LPG is most widely recovered during the extraction of natural gas, which is found beneath the earth's surface.
Our Price Analysis Methodology
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This report provides the cost structure of LPG production by the petroleum refining process. In this process, the crude oil recovered is separated into oil and wet gas via a gas trap.
This report provides the cost structure of LPG production by natural gas processing. In this method, the crude oil recovered from the oil wells is sent to the gas trap where it is separated into wet gas and oil.
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