Summary:

On 1 October 2026, Sonatrach raised its October export prices for liquefied petroleum gas (LPG), increasing propane by $110 per ton to $670 and butane by $140 to $750 per ton. Sonatrach’s pricing serves as a reference for LPG markets across the Mediterranean and Black Sea regions, including Turkey. 

The increase comes amid elevated global energy prices and growing demand for alternative LPG suppliers. India has recently turned to Algeria as part of efforts to diversify its LPG supply amid disruptions around the Strait of Hormuz. The higher export prices therefore come as Sonatrach maintains its position as a regional LPG supplier and benefits from stronger international demand for Algerian cargoes. 

Outlook: 

Algeria is in a favorable strategic position as an emerging LPG supplier to Mediterranean markets and buyers beyond the region. The current increase in prices comes amid supply disruptions around the Strait of Hormuz and efforts by major importers to diversify their suppliers, creating an opportunity for Sonatrach to expand its role in international LPG markets and capture higher export revenues. 

However, the current conditions may not be sustained for long. LPG demand typically increases ahead of the winter season, while supply disruptions can have a temporary effect on prices. A moderation in prices and demand as seasonal consumption fades would limit the duration of the current opportunity for Sonatrach. 

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