Butane gas has several uses and is mostly employed in LPG cylinders as the principal gas component. The market for butane gas is expanding as a result of the growing use of LPG cylinders in cars, heating appliances, and cooking equipment. Butane is used as a chemical feedstock to produce ethylene and butadiene, two essential components of synthetic rubber, in addition to its application in LPG cylinders.
However, despite the growing demand for butane gas, the oil and LPG butane gas industry is still facing pain points in procuring said essentials. Today, MIR ENERGY will discuss these challenges.
- Complicated Compliance with Labor Laws
Buyers of oil and LPG butane Gas in Maryland must continuously check that suppliers are abiding by local labor laws and international norms for working conditions, as infractions of these laws show a lack of diligence on the buyers’ behalf when evaluating suppliers. Such carelessness could subject the buyer to significant fines and penalties. To confirm that suppliers’ facilities are in compliance with labor standards, buyers will have to incur higher procurement expenditures. - Price Fluctuations
Because butane prices vary depending on the season, purchasers are having trouble determining their budgets for purchases. The pricing discrepancy results from the vehicle fuel suppliers’ shifting demand when they switch between summer-grade gasoline and winter-grade gasoline. - Limitations on Sourcing
To encourage the use of locally produced goods, the governments of many nations, notably Nigeria, China, and India, impose import taxes on crude oil and refined products. Butane prices are typically on the higher side due to supply and demand mismatches or inefficiencies among local players along the entire value chain.
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