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The Saudi Arabian government has increased the price of ethane, a feedstock used by petrochemical firms, from $0.75 per million Btu to $1.57 per million Btu. The government also hiked methane prices from $0.75 to $1.25. The jump in pricing is the result of the removal of government subsidies to offset a financial deficit caused by low oil prices and heavy military spending. Ethane produced in Saudi Arabia has been among the cheapest in the world for decades. The move brings Saudi Arabian ethane prices closer to, but still below, those of the U.S.
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