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.
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.
Because it comes from natural gas or petroleum, alterations in the supply of either of these can affect the cost of propane. So if there is a shortage of natural gas or the cost of petroleum goes up, then the price of propane also will go up. When the price for crude oil increases, then you generally also see the increase in the price of propane.
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 need Medina propane, Cincinnati propane, Dayton propane, Indianapolis propane or propane delivery throughout Ohio or Indiana, Thrifty Propane delivers to both of these states as well as several other states. They sell only HD-5 propane, which is the purest, cleanest propane available.
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.
Because it comes from natural gas or petroleum, alterations in the supply of either of these can affect the cost of propane. So if there is a shortage of natural gas or the cost of petroleum goes up, then the price of propane also will go up. When the price for crude oil increases, then you generally also see the increase in the price of propane.
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 need Medina propane, Cincinnati propane, Dayton propane, Indianapolis propane or propane delivery throughout Ohio or Indiana, Thrifty Propane delivers to both of these states as well as several other states. They sell only HD-5 propane, which is the purest, cleanest propane available.
About the Author:
Cath Buhr loves writing reviews on propane retailers. For more information about Ohio propane retailers or to find local Ohio propane prices, please visit the Thrifty Propane site today.
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