- The propane supplier’s service fees – LPG gas prices can be affected by the services and fees a supplier may charge when they deliver propane to you. Be sure to ask your supplier for a breakdown of costs. Often times, a supplier will charge for fixed prices for a given amount of period and automatic delivery. Other fees may include tank rent, regulatory fee, restocking fee, transportation costs, and will call fees.
- The season and your location– LPG gas prices tend to be higher in the cold months and in winter due to the higher demand on propane for heating. Propane suppliers factor in transportation costs, too. Propane in the US is produced in the Midwest and the Gulf coast, and the further you are from these locations, the higher the transportation cost may be.
- Crude oil prices – Propane is a byproduct of the production of crude oil, so its prices can be affected by the prices of that oil.
Switching to propane or liquefied petroleum gas (LPG) is a good idea if you want to lower your energy costs while ensuring enough warmth in your home. LPG is versatile for cooking, heating water, and clothes drying, too. To make sure that propane is saving you money, you need to be aware of LPG gas prices. Here are some of the factors that affect current LPG gas prices:
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