Propane is similar to gasoline in that not only is it priced to sell by the gallon, the price for a gallon of propane goes up and down. The range of costs per gallon for propane, however, can be a bit more dramatic than the cost of gasoline. Here are a few reasons why your Ohio propane costs oscillate throughout the calendar year.
It can be helpful to first understand a little bit about propane in general. Unlike many other fuel sources, the vast majority of propane sold in the United States is produced domestically. Texas is the main source of propane, which is produced when you refine petroleum and natural gas. Once produced, propane is stored in salt caverns. Domestic propane is stored either in Conway, Kansas or Mont Belvieu, Texas and then shipped via truck, rail or pipeline.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will increase.
Of course, the demand and supply of propane also directly affects price. While this gas is produced consistently throughout the calendar year, there are times of the year when the demand is much lower. During the hot, summer months, people use much less propane as they don't need to heat their homes. So the price is simply lower in July than it would be in January when you are subject to freezing temperatures. It is also is important to note that winter weather can begin long before the first day of winter and can extend well into spring, and longer months of cold increase demand, decrease the supply and drive up the cost per gallon.
This is why customers should try to pre-purchase as much propane as possible when the prices are historically low, such as during the summer. You can cut your yearly propane costs in half by purchasing when the supply is high and the demand is low. Buy in July and you will be much happier when prices are double in January.
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.
It can be helpful to first understand a little bit about propane in general. Unlike many other fuel sources, the vast majority of propane sold in the United States is produced domestically. Texas is the main source of propane, which is produced when you refine petroleum and natural gas. Once produced, propane is stored in salt caverns. Domestic propane is stored either in Conway, Kansas or Mont Belvieu, Texas and then shipped via truck, rail or pipeline.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will increase.
Of course, the demand and supply of propane also directly affects price. While this gas is produced consistently throughout the calendar year, there are times of the year when the demand is much lower. During the hot, summer months, people use much less propane as they don't need to heat their homes. So the price is simply lower in July than it would be in January when you are subject to freezing temperatures. It is also is important to note that winter weather can begin long before the first day of winter and can extend well into spring, and longer months of cold increase demand, decrease the supply and drive up the cost per gallon.
This is why customers should try to pre-purchase as much propane as possible when the prices are historically low, such as during the summer. You can cut your yearly propane costs in half by purchasing when the supply is high and the demand is low. Buy in July and you will be much happier when prices are double in January.
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. For additional information about Cincinnati propane retailers or to find local Baltimore propane prices, please check out the Thrifty Propane website now.
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