If you use propane to heat your house and run appliances, then you are well acquainted with the fact that propane costs vary greatly throughout the year. Sold by the gallon just like gasoline, propane tends to have some pretty severe prices changes, and the cost changes day to day. There are a few reasons why the price wavers for this important resource.
It first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
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.
If you are propane customer, you probably noticed that your company suggests pre-purchasing the bulk of your yearly propane when prices are lower. This not only ensures that you will have plenty of propane during the winter months, it also means you can save hundreds of dollars or even thousands on your yearly energy costs.
If you need Medina propane, Cincinnati propane, Dayton propane, Indianapolis propane or propane delivery throughout Ohio or Indiana, Thrifty Propane delivers to both of these states as well as several other states. They sell only HD-5 propane, which is the purest, cleanest propane available.
It first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
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.
If you are propane customer, you probably noticed that your company suggests pre-purchasing the bulk of your yearly propane when prices are lower. This not only ensures that you will have plenty of propane during the winter months, it also means you can save hundreds of dollars or even thousands on your yearly energy costs.
If you need Medina propane, Cincinnati propane, Dayton propane, Indianapolis propane or propane delivery throughout Ohio or Indiana, Thrifty Propane delivers to both of these states as well as several other states. They sell only HD-5 propane, which is the purest, cleanest propane available.
About the Author:
Cath Buhr loves writing reviews on propane retailers. For additional details about Cincinnati propane retailers or to find local Baltimore propane prices, please visit the Thrifty Propane website today.
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