Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Intensified US-Iran military actions disrupt oil shipments through the Strait of Hormuz, causing a sharp spike in crude oil prices. The price jump leads to severe depreciation of the Indian rupee, raising import costs and inflationary concerns.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Propane | China | FOB | USD 861.76/MT | May 2026 |
| Propane | Saudi Arabia | CIF | USD 929.34/MT | May 2026 |
| Propane | USA | FOB | USD 981.19/MT | May 2026 |
| Propane | Netherlands | CIF | USD 955.45/MT | May 2026 |
| Propane | Brazil | CIF | USD 994.00/MT | May 2026 |
| Propane | China | FOB | USD 719.11/MT | April 2026 |
| Propane | Saudi Arabia | CIF | USD 789.11/MT | April 2026 |
| Propane | USA | FOB | USD 806.11/MT | April 2026 |
| Propane | Netherlands | CIF | USD 845.11/MT | April 2026 |
| Propane | Brazil | CIF | USD 840.11/MT | April 2026 |
Stay updated with the latest propane prices, historical data, and tailored regional analysis
Asia
In China, the monthly average Propane price was ~RMB 3,309.79/MT in April and around RMB 3,119.05/MT in the subsequent month, showing a decrease of ~5.8%. Similarly, In Japan, the monthly average Propane price was ~JPY 70,130/MT in April and around JPY 66,086/MT in the subsequent month. The decline reflected softer buying after earlier LPG supply concerns, even as rerouted cargoes and higher freight kept spot availability tight for PDH units and crackers.
In India, the monthly average Propane price was ~INR 46,410.92/MT in April and around INR 43,734.34/MT in the subsequent month. Prices softened as buyers resisted high import costs, while supply uncertainty from Middle East flows kept replacement cargo planning difficult.
Europe
In Germany, the monthly average Propane price was ~EUR 426.10/MT in April and around EUR 401.54/MT in the subsequent month, showing a decrease of ~5%. Warm spring weather reduced heating demand, while strong US propane inflows lifted inventories and lowered import premiums in Northwest Europe. Muted petrochemical demand and weak cracker margins also limited fresh spot buying.
North America
In the United States, the monthly average Propane price was ~USD 487.42/MT in April and around USD 459.31/MT in the subsequent month, showing a decreasing trend. High production and rising inventories created a supply-heavy market, while exports helped absorb surplus volumes. Softer PDH margin and limited downstream pull capped domestic demand growth.
Analyst Insight
According to Procurement Resource, near-term propane prices are likely to remain sensitive to Middle East cargos, freight costs, and refinery operating rates. Weak heating demand and high US supply may limit any sharp rebound.
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Asia
Propane prices in Asia increased during Q1’26 due to supply constraints and rising logistics costs. The Iran war disrupted tanker routes through the Strait of Hormuz, through which a significant share of LPG trade flows, reducing availability and increasing freight and insurance costs, which led to price increases. In India, around 60% of LPG flows through Hormuz, and supply disruptions forced refiners to seek alternative sources such as Russian cargoes while adjusting maintenance schedules, tightening domestic availability. Demand from residential LPG consumption and petrochemical sectors remained stable, supporting prices despite broader economic pressures.
Europe
In Europe, propane prices remained firm as supply disruptions and higher import costs supported the market. Reduced Gulf exports forced buyers to compete for limited cargoes, increasing freight rates and insurance premiums, which led to price increases. LNG cargo rerouting also impacted overall energy logistics, tightening supply conditions for related fuels including propane. However, moderate downstream demand from heating and petrochemical sectors, along with economic slowdown concerns, limited sharper price increases.
North America
In North America, propane prices followed an upward trend supported by rising logistics costs and supply uncertainty. The Iran war increased freight and insurance costs for imports, while restricted tanker movement through Hormuz raised global supply concerns, which led to price increases. Domestic supply adjustments and increased inventory levels helped stabilize availability, preventing extreme price spikes. Demand from residential heating and petrochemical feedstock usage remained steady, supporting overall pricing.
Propane is basically a 3-carbon alkane. It is known to be in gaseous state at standard temperature and pressure, but it can easily be compressed to a transportable liquid state. It is also known as a by-product of natural gas. It is most commonly utilised as a fuel.
C3H8
Adhesives and sealant chemicals, Adsorbents and absorbents, Fuels and fuel additives, Functional fluids (for both open and closed systems), Intermediates, Laboratory chemicals, Processing aids, specific to petroleum production, Propellants and blowing agents
Dimethylmethane, Propyl hydriden-Propane
AmeriGas Propane, Inc, Royal Dutch Shell (Shell), Saudi Arabian Oil Co, GAIL (India) Limited, China Petrochemical Corporation (SINOPEC)
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.
Production of Propane via natural gas involves the running of crude oil via gas trap in order to separate it into wet gas and oil. This step is followed by several other processes to obtain LPG, which is further finally divided into butane, isobutane and propane.
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