Understanding Changes In The Price Of Propane

By Cath Buhr


Propane is similar to gasoline in that not only is it priced to sell by the gallon, the price for a gallon of propane goes up and down. The range of costs per gallon for propane, however, can be a bit more dramatic than the cost of gasoline. Here are a few reasons why your Ohio propane costs oscillate throughout the calendar year.

First, it might be of interest for you to understand the process by which propane is obtained. When natural gas or petroleum is refined, propane is produced and then it is stored in salt caverns and eventually delivered using a pipeline and also by trucks. The United States imports only about 10% of the propane used in the country and most propane comes from Texas. The best quality of propane is HD-5 propane, which burns hotter and cleaner than other propane.

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.

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 customers should try to pre-purchase as much propane as possible when the prices are historically low, such as during the summer. You can cut your yearly propane costs in half by purchasing when the supply is high and the demand is low. Buy in July and you will be much happier when prices are double in January.

If you are searching for Ohio propane or Indiana propane, consider opting for Thrifty Propane. They are an excellent source of HD-5 quality propane for those needing Columbus propane, Indianapolis propane, Dayton propane, Medina propane or propane throughout Ohio, Indiana and several other states.




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