If you use propane to heat your house and run appliances, then you are well acquainted with the fact that propane costs vary greatly throughout the year. Sold by the gallon just like gasoline, propane tends to have some pretty severe prices changes, and the cost changes day to day. There are a few reasons why the price wavers for this important resource.
First, it might be of interest for you to understand the process by which propane is obtained. When natural gas or petroleum is refined, propane is produced and then it is stored in salt caverns and eventually delivered using a pipeline and also by trucks. The United States imports only about 10% of the propane used in the country and most propane comes from Texas. The best quality of propane is HD-5 propane, which burns hotter and cleaner than other propane.
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.
Another thing that affects the cost of propane is supply and demand. Propane is produced throughout the year, but the demand for this resource is much higher during the winter when it is colder out and people need to heat their homes. Historically, prices are always considerably higher in months such as January and February then they would be in July or August. A particularly harsh winter can increase the demand substantially, reduce the supply and drive up propane costs. Likewise, if snowstorms prevent propane trucks from bringing propane from Texas or Kansas, this also can increase the cost of your propane.
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.
First, it might be of interest for you to understand the process by which propane is obtained. When natural gas or petroleum is refined, propane is produced and then it is stored in salt caverns and eventually delivered using a pipeline and also by trucks. The United States imports only about 10% of the propane used in the country and most propane comes from Texas. The best quality of propane is HD-5 propane, which burns hotter and cleaner than other propane.
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.
Another thing that affects the cost of propane is supply and demand. Propane is produced throughout the year, but the demand for this resource is much higher during the winter when it is colder out and people need to heat their homes. Historically, prices are always considerably higher in months such as January and February then they would be in July or August. A particularly harsh winter can increase the demand substantially, reduce the supply and drive up propane costs. Likewise, if snowstorms prevent propane trucks from bringing propane from Texas or Kansas, this also can increase the cost of your propane.
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 writing 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 site now.