What Affects Propane Prices?
Like most marketable fuels, propane’s prices fluctuate and are affected by several factors. The price of crude oil, the demand for propane and the distance the propane needs to travel to reach the customer all influence the price consumers pay for the propane. Even though propane originally consists of crude oil and natural gas, the cost of crude oil directly affects the cost of propane because crude-oil based fuels are a direct competitor of propane. The other main influence of price is the supply and demand for propane. The production of the fuel is not based on the seasons of the year, but more about how much propane is used during those seasons. This means that during the summer there is a surplus of propane available since most homeowners do not use as much propane to heat their homes; as a result, the prices may be lower. Conversely, propane gas prices are higher in the winter when there is a larger need for the fuel to provide heat for homes. Additionally, transportation costs a
