Please enable JavaScript to access this page. Homes And Families Counselling: The Rise & Fall Of Propane Prices

The Rise & Fall Of Propane Prices

Propane is similar to gasoline in that not only is it priced to sell by the gallon, the price for a gallon of propane goes up and down. The range of costs per gallon for propane, however, can be a bit more dramatic than the cost of gasoline. Here are a few reasons why your Ohio propane costs oscillate throughout the calendar year.

It can be helpful to first understand a little bit about propane in general. Unlike many other fuel sources, the vast majority of propane sold in the United States is produced domestically. Texas is the main source of propane, which is produced when you refine petroleum and natural gas. Once produced, propane is stored in salt caverns. Domestic propane is stored either in Conway, Kansas or Mont Belvieu, Texas and then shipped via truck, rail or pipeline.

Because it comes from natural gas or petroleum, alterations in the supply of either of these can affect the cost of propane. So if there is a shortage of natural gas or the cost of petroleum goes up, then the price of propane also will go up. When the price for crude oil increases, then you generally also see the increase in the price of propane.

Another thing that affects the cost of propane is supply and demand. Propane is produced throughout the year, but the demand for this resource is much higher during the winter when it is colder out and people need to heat their homes. Historically, prices are always considerably higher in months such as January and February then they would be in July or August. A particularly harsh winter can increase the demand substantially, reduce the supply and drive up propane costs. Likewise, if snowstorms prevent propane trucks from bringing propane from Texas or Kansas, this also can increase the cost of your propane.

This is why customers should try to pre-purchase as much propane as possible when the prices are historically low, such as during the summer. You can cut your yearly propane costs in half by purchasing when the supply is high and the demand is low. Buy in July and you will be much happier when prices are double in January.

For those who need an Indiana propane company or Ohio propane company, Thrifty Propane delivers throughout these two states, as well as Delaware, Kentucky, Pennsylvania, Michigan, West Virginia and New Jersey. If you need Medina propane, Columbus propane, Indianapolis propane or need delivery to another town or city, Thrifty Propane sells only the best quality propane, which is HD-5 propane.

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