The decrease in oil prices will not have a similar聽effect on the prices of liquidified petroleum gas, according to Selim Siper, the President of Turkish LPG Association.
Oil prices have fallen dramatically since June 2014聽from $115 to around $86; its lowest in four years. The decrease raises聽the question on whether聽LPG prices will also decrease.
"LPG is produced more out of natural gas than petroleum.聽So we cannot say that decrease in oil prices will affect LPG prices. For the last year because of the shale gas boom in the聽U.S.A., LPG production has increased and聽the price of LPG has聽lowered,"聽said Siper.
"LPG prices won鈥檛 reduce anymore, quite the contrary, growth demand in the winter聽will increase LPG prices."
LPG is a hydrocarbon consisting of propane and butane. Propane is a gas that can power cars as LPG, as well as having the capability to heat homes.
"Propane and butane loosely follow the price of crude oil on a macro scale,"聽said Alexander Stohr, Autogas Manager of World LPG Association.
Stohr agreed with Siper that with the advent of shale gas聽in the U.S., the聽long-term prices for LPG will be聽driven down.聽
"However, there has recently been a considerable spike in prices, with costs tripling,聽when stocks - emptied through excessive export - were met by a rapid聽increase in聽demand and an unusually harsh winter,"聽said Stohr.
A wet summer will drive up the amount of LPG needed to dry crops such as grain, albeit the amount聽being kept聽in check by the average聽harvest聽quality聽in competing markets, where humidity of the grain determines the price, according to experts.
By Murat Temizer
Anadolu Agency