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Why do Propane gas prices fluctuate?

April 26, 2017fluctuate gas prices propane

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Why do Propane gas prices fluctuate?

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In a free market economy many supply factors affect the pricing of all goods, including Propane. Propane comes from crude oil and natural gas. It’s wholesale pricing usually tracks the cost of crude oil. When the OPEC Nations cuts production in an effort to increase prices, the price of Propane also begins to rise. Weather also has a large impact on energy prices. Colder than normal temperature will mean greater demand and prices for all heating fuels will rise as production companies work to meet that demand. There are several factors that will influence Propane prices -Record high crude oil prices -Record high natural gas prices -Low US Propane inventory levels -Low US Propane imports According to recent US Department of Energy statistics, Propane is HALF the price of electricity per BTU. Propane gas is safe, clean-burning and is still your best value!