Oct. 29 (Bloomberg) -- Saudi Aramco, the largest supplier of liquefied petroleum gas to Asia, cut prices of cargoes loading in November after global crude oil benchmarks declined.

The Dhahran, Saudi Arabia-based company reduced the price of propane cargoes by $300, or 38 percent, to $490 a metric ton, said a company official who asked not to be identified. Aramco lowered the price of butane by $320, or 40 percent, to $490 a ton.

Crude oil futures on the New York Mercantile Exchange reached a record $147.27 a barrel on July 11 and have dropped more than 55 percent since then.

Aramco sells LPG under one-year contracts and as individual cargoes for immediate delivery. The cargoes are sold free-on- board, requiring the buyers to pay for shipping costs.

LPG, a by-product of oil refining and crude oil and natural gas output, is used for heating, cooking and as a motor fuel. LPG is also used as an alternative to naphtha for processing into petrochemicals.

To contact the reporter on this story: Nesa Subrahmaniyan in Singapore at nesas@bloomberg.net.

Last Updated: October 29, 2008 03:21 EDT