Bottled gas goes up in price from Tuesday this week
Bottled gas goes up in price from Tuesday this week
BOTTLED butane gas is set to go up another 5% from tomorrow (Tuesday) – just as temperatures are about to plummet to unprecedented levels across the country.
Gas bottles have now risen by a total of 14.5% since July and the off-the-shelf price is €12.89 – although those who order theirs via a contract with fuel companies and have them delivered will typically pay a few euros more.
The price hike only applies to gas in orange bottles – the lighter-weight silver-coloured bottles are supplied by private firms and not subject to State control, meaning their costs can be set by the distributor.
Despite the imminent rise, however, bottled butane gas remains well below the price of €17.50 it retailed at until March 2015.
From tomorrow, it will be the price of a cup of coffee higher than its record low six months ago, when it cost just €11.25 due to raw material costs plummeting – levels not seen in over 10 years.
The cost hike this week is purely to cover the increase in value of raw materials, but will not be enough for the industry to break even and will mean its ongoing deficit increases.
If bottled gas firms passed on the full cost of the raw material price rise to the end consumer, each unit would cost €13.57, an increase of 10.5%.
But national law establishes a maximum price rise and fall of 5%, meaning if the raw material falls in cost by an even greater amount, the companies generate a surplus which helps them stay afloat during times – like now – when the 5% maximum increase is not enough to cover the actual price of gas at source.
Anyone who wants to avoid paying an extra 68 cents should go out today and buy bottles, as they currently cost €12.21.
