13 December 2011 19:54 [Source: ICIS news]
DUBAI (ICIS)--Saudi Arabia’s government may keep its propane pricing formula unchanged in 2012 because it has still not announced changes although the current year is ending, a petrochemical equity analyst said on Tuesday.
Changes in the pricing formula were typically announced in December in recent years but nothing had been announced so far this year, the analyst said.
The Saudi government is pricing propane at a 28% discount to Japan naphtha prices less freight costs this year, having reduced the discount by 1% annually since 2004, he said.
He spoke on the sidelines of the Gulf Petrochemicals and Chemicals Association (GPCA) Forum in Dubai.
The discount to Japan naphtha prices is likely to be cut after 2012 but it is expected to be capped at a minimum of 24-25%, he added.
The Sixth Annual GPCA Forum is being held on 13-15 December, with the theme “Moving Downstream – Creating Value and Sustainable Growth”.
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