Three Things You Should Know About Propane Prices
More than 60 million Americans use propane for indoor heating, cooking, water heating, refrigeration, clothes drying, and many other applications at home. Propane is a byproduct of natural gas and crude oil production, and it is said to be cheaper to use than electricity. However, you might be surprised to find a propane dealer offering a ‘residential price’ that is different from the average spot price of propane. There are three major reasons for this discrepancy:
- The dealer’s services and fees can affect propane prices. Propane retailers may exclude / include a number of services when they charge their clients. The price may be affected by discounts for a given period, automatic delivery, and budget payment plans. These factors could make the price of propane vary from one service provider to another. To be certain, ask questions about the price of propane per gallon for delivery and compare prices with other retailers in your area.
Many other factors effect the price of propane. Among these are the price of renting the tank, regulatory fees, transportation fuel surcharge, restocking and closeout fees, reconnection fees, system leak tests, and minimum monthly purchase requirements. Installation, diagnostic, early termination, returned check, late charges, and special or emergency delivery fees may also impact the price.
- The price of crude oil can affect the price of propane, hence; you can expect to pay more if crude oil prices are high.
- Where you live and the climate of your place matters. That’s right—climate variations can affect the price of propane. For this reason propane tends to be more expensive in winter and during unusually cold days. The high demand for propane during those times makes the price higher, causing supply to be shorter. Transportation costs can likewise influence the price of propane. If you live far from the Midwest or the Gulf Coast (America's two major sources for propane), you can expect to pay more.
To get the best value for your money, be sure to order propane from a reputable dealer that is known to deliver fair and consistent prices. Look for a propane dealer that has been in business for many years. One of the leading propane dealers in the US has been around for more than six decades, and many customers still count on their ability to keep their prices reasonable and consistently affordable.
About the Author:This article was written by ThompsonGas. The 16th largest retail propane company in the U.S., ThompsonGas has been family owned and operated since 1946. The propane gas dealer provides cheap propane for residential and commercial propane gas service to customers across 10 states in the East and Southeast.