Why are propane prices different in various areas of the country?
Propane prices vary in different parts of the country for two key reasons that are related to supply and demand: weather influences and location. 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 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. Propane prices are also influenced by proximity of the customer to the supply. In an area such as the Gulf Coast, customers are close to major suppliers and shipping ports, so the effort needed to get propane to its customers is minimal. Those customers who live farther away usually pay higher prices when trans
