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.
As it is a by-product of petroleum refining and natural gas refining, the prices of these two resources have a direct effect on propane prices. If the cost for either goes up, such as when there might be a shortage of natural gas, this will cause the cost of propane to increase.
Propane is always being produced and stored, but there are times during the year when the demand is much higher and this lowers the amount in supply. When the weather is cold, people need propane to heat their homes, so this demand makes the price higher. Warmer weather generally always means that your propane costs will drop. When you have many months with very cold weather, then your propane prices will stay very high. Sometimes inclement weather also affects the ability of trucks to transport the propane which decreases supply and the costs increase.
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.
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.
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.
As it is a by-product of petroleum refining and natural gas refining, the prices of these two resources have a direct effect on propane prices. If the cost for either goes up, such as when there might be a shortage of natural gas, this will cause the cost of propane to increase.
Propane is always being produced and stored, but there are times during the year when the demand is much higher and this lowers the amount in supply. When the weather is cold, people need propane to heat their homes, so this demand makes the price higher. Warmer weather generally always means that your propane costs will drop. When you have many months with very cold weather, then your propane prices will stay very high. Sometimes inclement weather also affects the ability of trucks to transport the propane which decreases supply and the costs increase.
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.
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.
About the Author:
Cath Buhr enjoys writing reviews on propane retailers. For additional information about Cincinnati propane retailers or to find local Baltimore propane prices, please visit the Thrifty Propane website now.
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