Factors that Effect Propane Prices
Propane prices are typically influenced by the prices of crude oil and natural gas. Propane is a by-product of natural gas manufacturing and crude oil refining processes. Hence, its prices are likely to change following the changes in the prices of those fuels. The location is another factor that can trigger changes in the price of propane. The farther you are from the production sources, the higher the price of the fuel will be. However, there are reputable propane delivery companies that are able to consistently deliver fair prices to their customers, no matter how far you are.
Supply and demand has an impact on most energy prices, and propane is not an exception. LPG is produced all year round, so supply is not greatly affected. However, usage or demand is another matter, especially when you consider that more people are likely to buy propane in the winter or in the colder months for heating. Most of the propane we use in the US is produced locally, but severe cold water could easily increase the demand for it, resulting in a price hike, which is caused by the high demand and dwindling supply.
How to Track Propane Prices
These days, it is now easier to find information on the prices of propane online. Tracking propane prices will be beneficial if you use the gas seasonally. However, if you rely on it throughout the year, it is advisable to check with your propane dealer and consider arranging a monthly delivery service, which is adjustable according to your usage and actual gas prices. Some of the best propane dealers offer a 'never run out' guarantee, too, so you can be sure that you will never run out of gas.