Know About The Current Propane Prices

Posted by ThompsonGas on March 9th, 2015

The increase or decrease in propane prices can be affected by many factors, such as from where the propane is sourced, competing fuels in the marketplace, and the amount that you use. The price of natural gas and crude oil may affect propane prices, too. Propane may be produced from both natural gas processing and crude oil refining, but its price is influenced mainly by crude oil's rates putting it on par with crude oil fuels.

Propane prices may occasionally rise. Sometimes, the spikes and dips are not proportional to conventional fluctuations typically influenced by supply and demand. There are companies that may have difficulty in refilling their propane reserves during a peak season, necessitating the need to temporarily increase prices. Gas processing factories and refineries produce propane at an almost steady rate all year, so when supply is limited, there are service providers that may not be able to fulfill the demand for the fuel.

Propane retailers and wholesalers may be forced to charge higher rates when supply is low, passing this burden on to the consumer. Propane imports normally do not provide a cushion for unexpected inflation and shortage of supply. When prices do increase, petrochemical sectors may opt to cut back on their use to make propane more available for other uses.

The price of propane may increase due to the season. In winter, the price may increase due to more customers requiring propane for heating so that supplies may be low. Prices are more likely to rise until the supplier can keep up with the demand for propane. In summer, propane can be in demand due to outdoor grilling and barbecues. Transportation costs may affect propane prices, too. Hence, if you are far from two major US supply sources (the Midwest and Gulf Coast); the more expensive the supplier will be forced to charge for propane.

Choosing the right propane supplier is crucial to ensure you will not be affected by price fluctuations. The best suppliers can keep their delivery prices, regulatory fees, restocking, installation, and other service fees the same to give you some stability despite rising propane prices. If you need a propane supplier, choose a family-owned and operated company established in your area for a long time. This way, you can be sure that you are getting high-quality, reliable, clean, and safe propane at an affordable price, even during the peak season.

About the Author:

This article was written by ThompsonGas. The 16th largest retail propane company in the U.S., ThompsonGas has been family owned and operated since 1946. The propane gas dealer provides cheap propane for residential and commercial propane gas service to customers across 10 states in the East and Southeast.