Costa News Spain Breaking News | English News in Spain.
Butane gas is still used to heat homes in Spain despite the high cost. According to the Ministry for Ecological Transition & Demographic Challenge (Miteco), the market for these cylinders has shrunk. Data shows that the sales of cylinders have decreased by 50% in the past two decades to 700,000 tons per year. This is especially true in rural areas.
Distribution companies claim that this shrinking of the market has led to “the progressive closure of distributors, the decapitalisation or the present companies and the reduction in investment, which may affect the supply or quality of services offered to consumers”.
The government is now updating the method of calculating the price that consumers pay for this product and responding to the calls made by the Spanish Federation of Liquid Petroleum Gas Distributors (Fedglp).
The Department headed by Sara Aagesen has published in the Official State Gazette on Thursday, 6th March a Ministerial Order updating this automatic system of determining maximum sales prices prior to taxes.
According to the calculations of the ministry, if the revised methodology had been used in January’s review the increase would have equaled 1.36 euros, or 8.1% more than current prices, but less that a third the 26% rise in the CPI registered since 2015, which was the year of last update.
Fedglp is calling for an increase in the price of cylinders by 1.80 euros to cover the costs of salaries, transportation and fleet maintenance. These are necessary to sustain the essential service of home delivery.
The price cannot exceed 17.47 Euros.
Updated marketing costs will gradually be passed onto consumers, with an increase of no more than five per cent per cylinder every two months.
On 21 January, the price rose by 0.18% to 16.64 Euros. The price will be changed again on 18 March, while still respecting the 5% limit. The price can’t go higher or lower than 15,80 euros.
