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Wednesday, 30 June 2010

Double Whammy on the Cost of a Cylinder of Butano

The price for a 12.5 Kg cylinder of Butane gas (orange cylinder) will suffer two increases from tomorrow, 1st July 2010.

The first increase of 0.55 €, from the current price of 11.68€ to 12.23€, including tax at 16%, an increase of 4.7% is due to the quarterly review of the maximum sale price before tax of liquefied petroleum gas. The price is 84.4041 cents per kilogram which gives a price before tax of 10.55€

This latest increase is in addition to that applied in the first quarter of 5.7 % , and in January , 3.4% , and causes the gas cylinder to be more expensive by 14.4 % so far this year .

The double whammy comes because on the same date the Spanish government is increasing the rate of IVA (value added tax) from 16% to 18%.

The new price including increased IVA should be 12.45€. This means an actual increase of 6.4% from the current 11.70€.

There will be a pro rata increase for the silver cylinders of butane.

The application of this rise will affect between 8 and 10 million users in Spain who still use butane gas. The resolution, published today in the Official Gazette, covers all liquefied gas containers weighing between eight and 20 kilograms.

The higher cost of butane occurs even though the Ministry of Industry has found a 0.79% decrease in the cost of liquefied petroleum gas.

Post Script, 06.07.10: the CoastRider newspaper picks up on this article, 'Gas goes up'

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