Platts Daily Analysis of Middle Eastern LPG Markets

• LPG prices decline to a 15-month low
• Persian Gulf–Japan freight rates remain stable.

Middle Eastern LPG cargo prices declined to a 15-month low at the Asian close on July 17, as market fundamentals weakened amid expectations of increased supply following the OPEC+ decision to unwind production cuts, alongside softening demand from China.

Market participants noted that Chinese buying interest has slowed since the onset of the US-China tariff truce in May. Buyers of US-origin LPG in China have been seeking alternative sources ahead of the anticipated expiry of the truce in mid-August.

Platts assessed FOB Arabian Gulf propane cargoes at $547/mt at the Asian close on July 17, down from $553/mt the previous day. The decrease outpaced the marginal 48 cents/mt decline in front-month September Brent crude futures. The last time Platts assessed FOB AG propane at a lower level was on May 17, 2024, at $534/mt.

Freight rates on the Persian Gulf–Japan route continued to rise but remained below the $80/mt threshold, as the market awaited Saudi Aramco’s announcement regarding August term LPG acceptances. Platts assessed the PG–Japan freight rate at $79.85/mt on July 17, up from $79.65/mt the previous day.

Meanwhile, Indonesia’s Pertamina is aiming to increase LPG imports from the United States following President Donald Trump’s decision to reduce import tariffs on Indonesian goods to 19%, down from a previously proposed 32%, according to a company official on July 16.

“As of 2024, approximately 57% of Indonesia’s LPG imports originate from the United States. We are now looking to optimize and expand that volume,” said Fadjar Djoko Santoso, Vice President of Corporate Communication at Pertamina, in a statement to Platts.

Source: Platts, S&P Global Commodity Insights – 17 July, 2025