Why are propane gas prices higher in Nantucket than the rest of the country?
Propane prices vary in different parts of the country for four (4) key reasons that are related to supply and demand: weather influences, local economic forces (cost of land, rent, wages, insurance), logistics and location in proximity to supply and competition. In the short-term, the demand for propane among residential and commercial customers is affected significantly by weather. Because weather conditions change rapidly, large and sudden shifts in demand can occur, creating imbalances that result in significant price movements. These weather factors can also influence the propane distribution system. As with all energy sources, propane prices are influenced by the systems required to transport the energy source from where it is produced to where it is used, whether through pipelines, ships, or trucks. A major weather event or any prolonged weather events impact propane prices. Nantucket is an expensive place to do business. The costs of land are high, wages are high and other costs
