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.
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.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will 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 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.
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.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will 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 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.
About the Author:
Cath Buhr enjoys writing reviews on propane retailers. To get additional details about Ohio propane retailers or to find local Ohio propane prices, please check out the Thrifty Propane site now.
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