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Propane, cooking gas, LPG
OPEC & Saudi’s Hit Poor With Propane Boost
The jump in the wholesale price of propane also known as cooking gas or LPG was raised last week by Saudi Arabia. The price increase was $50 per metric tonne, which at 2,200 pounds is 200 pounds more than the British ton. The new contract price is now $895 per tonne, up from $845 per metric tonne.
LPG cooking gas is used in Asia and Africa by street food vendors and some cars, light trucks and buses. It is also used in remote areas of the world for heating as it is easy to transport and lighter than gasoline or diesel fuel. Propane burns much cleaner and hotter than all the other fuels.
This past week, the U.S. energy EIA report, shows the wholesale price of LPG as less than half the price of diesel. There is no shortage of propane so why is the price being bumped up so much?
I mention this in keeping with today’s statement by the talking head for the Saudi Arabia government. The Saudi Information and Culture minister today says OPEC will work to “guarantee the availability of oil supplies now and in the future” or basically to fix prices and slow down the supply in plain English.
A former member of the S.A.E. (Society of Automotive Engineers), Mark Smyth has had a lifelong love for machinery. Driving a tractor on his family farm at age 4, he raced boats and cars during the 1960s and 1970s, both powered by gasoline and alcohol fuels. Having even used hydrazine (rocket fuel) as a fuel additive in drag racing, Mark learned all about synthetic lubes from a chemist who developed the very first synthetic lube oils to be certified for U.S. military specs back in 1952.
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