Know The Factors That Affect Current Propane Prices

Posted by ThompsonGas on October 10th, 2016

Knowing current propane prices can help you make informed decisions when comparing quotes between dealers. Likewise, it helps you determine if your current propane dealer is consistent with the market. Propane is the byproduct of natural gas and crude oil production and is used by millions of Americans every day for many different purposes such as cooking, heating, and grilling. It is surprising to know how prices differ from one dealer to another. Prices may differ depending on what the propane is used for as well. Knowing the factors that affect the current propane prices can help you determine whether you are paying too much.

The fees and services of any propane retailer are some of the leading factors that can affect the price of propane. Fixed prices, automatic delivery, and a customized payment plan are some of the most common factors that can make the price of propane vary from one dealer to the next. To make sure that you are getting a fair price, ask your propane dealer what they charge per gallon for automatic delivery and make sure that it is reasonable when compared to national or state averages. Some companies may charge a regulatory fee, tank rent, restocking fee, and transportation fuel surcharge. A company may charge you for installation if you are a new customer. Late charges, closeout fees, and emergency service fees may apply to some situations as well.

Two other factors that affect the current propane prices are the region where you live and the climate or season. Climate will always affect the price of propane. In fact, propane typically costs more in the winter due to an increase in demand. Prices are likely to be higher until the provider can keep up with the demand. Likewise, transportation costs are factored into the prices of propane. Often times, the further you are from the two major sources (the Midwest and the Gulf Coast), the higher the price of propane. Propane is a byproduct of the production of crude oil, so it makes sense that its price be affected by the market prices of oil.

To make sure you are paying fair prices for propane, consider buying from a reputable, well-established dealer that offers customized monthly payment plans. Some of the best propane dealers in the US will adjust your monthly payments according to your actual usage and the actual price of propane. If you are worried about monthly spikes, some companies offer a 'temperature-proof' plan, which allows you to budget the monthly costs for your propane without being affected by the sudden increase in propane prices.

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 affordable propane for residential and commercial propane gas service to customers across 10 states in the East and Southeast.

Contact Details:


5260 Westview Drive

Suite 200

Frederick, MD  21703


Toll Free: (800)-768-6612

Fax: 301- 432-7147



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Joined: February 12th, 2013
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