Just like gasoline, propane is sold by the gallon, and this cost per gallon changes throughout the year. There are several reasons why the cost of your propane is higher at some times than others. Unlike gasoline, propane prices can fluctuate a bit more dramatically, and there are definitely opportunities to save a great deal of money off your yearly propane costs.
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.
Of course, the demand and supply of propane also directly affects price. While this gas is produced consistently throughout the calendar year, there are times of the year when the demand is much lower. During the hot, summer months, people use much less propane as they don't need to heat their homes. So the price is simply lower in July than it would be in January when you are subject to freezing temperatures. It is also is important to note that winter weather can begin long before the first day of winter and can extend well into spring, and longer months of cold increase demand, decrease the supply and drive up the cost per gallon.
This is why propane companies typically suggest that their patrons pre-purchase large amounts of propane when the cost is very low. A customer can save hundreds of thousands of dollars off their yearly propane costs simply by purchasing when the weather is hot and when the demand is low.
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 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.
Of course, the demand and supply of propane also directly affects price. While this gas is produced consistently throughout the calendar year, there are times of the year when the demand is much lower. During the hot, summer months, people use much less propane as they don't need to heat their homes. So the price is simply lower in July than it would be in January when you are subject to freezing temperatures. It is also is important to note that winter weather can begin long before the first day of winter and can extend well into spring, and longer months of cold increase demand, decrease the supply and drive up the cost per gallon.
This is why propane companies typically suggest that their patrons pre-purchase large amounts of propane when the cost is very low. A customer can save hundreds of thousands of dollars off their yearly propane costs simply by purchasing when the weather is hot and when the demand is low.
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 enjoys writing reviews on propane retailers. For more information about Cincinnati propane retailers or to know local Baltimore propane prices, please check out the Thrifty Propane site now.
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