MOSCOW: Domestic liquefied petroleum gas (LPG) prices in Russia dropped sharply in December, halving compared to the previous month, due to a surge in supply following European Union sanctions that curbed exports, according to Reuters calculations.
The EU sanctions on Russian LPG, effective December 20, were driven by proposals from Poland, historically one of Russia’s largest LPG importers.
LPG, comprising propane and butane, is widely used as vehicle fuel, for heating, and in petrochemical production.
The sanctions redirected significant volumes of LPG to the domestic market, causing wholesale prices to plunge to approximately 14,000 roubles ($140) per metric ton in December, down from 28,000 roubles in November, based on trading sources and local commodity exchange data.
