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 can be helpful to first understand a little bit about propane in general. Unlike many other fuel sources, the vast majority of propane sold in the United States is produced domestically. Texas is the main source of propane, which is produced when you refine petroleum and natural gas. Once produced, propane is stored in salt caverns. Domestic propane is stored either in Conway, Kansas or Mont Belvieu, Texas and then shipped via truck, rail or pipeline.
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 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 can be helpful to first understand a little bit about propane in general. Unlike many other fuel sources, the vast majority of propane sold in the United States is produced domestically. Texas is the main source of propane, which is produced when you refine petroleum and natural gas. Once produced, propane is stored in salt caverns. Domestic propane is stored either in Conway, Kansas or Mont Belvieu, Texas and then shipped via truck, rail or pipeline.
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 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 information about Ohio propane retailers or to know local Ohio propane prices, please check out the Thrifty Propane website now.
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