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 first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
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.
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.
It first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
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.
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 loves blogging reviews on propane retailers. To get additional details about Ohio propane retailers or to know local Ohio propane prices, please check out the Thrifty Propane site today.
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