How Much Does Propane Cost?

2 Minutes Posted on:

About Me

Housing Development Construction: Choosing Your Contractor Investing in a large amount of property to create a residential development can be a great way to produce financial security and a significant return on that financial investment. However, building any kind of residential development means that you'll need to have a professional construction contractor on the project. When you're new to working with construction professionals, you may not know what to consider as you choose your contractor. That's why we built this site. We are sharing the benefit of our experience dealing with construction contractors to help you choose the contractor that you need for such a large-scale project. We hope that the information here will help you to find a construction contractor that's best for you.



Propane is a clean-burning and efficient fuel source that many people rely on to power appliances within their homes each day. If you are thinking of making the switch to a gas stove, furnace, or heating system, you may be wondering what you can expect to pay for the propane you will use in the future.

Estimating propane prices can be a challenging task because the actual price of this fuel is affected by many different variables. Understanding these variables will help you better determine if propane is right for your home.

Crude Oil Costs

Propane is a byproduct of the crude oil refining process. This means that the price of propane will be affected by crude oil prices within your market. The price-per-barrel for crude oil is constantly fluctuating as a result of geopolitical issues.

Although propane prices don't fluctuate as much as gas prices at the pump when crude oil values change, you may see a slight increase or decrease in propane costs as the crude oil market fluctuates.

Supply and Demand

The rule of supply and demand is an economic principle that applies to all commodities on the open market. Propane is a stable fuel that can be stored safely for long periods of time. This stability allows suppliers to create large stores of propane. These stores are held in reserve for times when demand for propane is estimated to the peak. Typically, this peak demand period occurs during the winter months. This explains why propane prices are higher in winter than they are in summer.

Occasionally, demand will increase unexpectedly and catch propane suppliers by surprise. This surprise demand can drive propane prices up on a temporary basis until production catches up and propane reserves are restored.

Proximity to Production

Location matters when it comes to propane prices. Delivery costs factor into the overall price that a consumer will pay for their propane. The closer you live to a major distribution point, the more affordable your propane will be. Costs increase the further out delivery gets because you will have to pay for the propane itself and the delivery costs associated with moving propane from the supplier to your home.

Each propane supplier relies on a different distribution point, so you may see price differences between propane companies in your area. Don't be afraid to shop around for the most affordable propane if you are looking to reduce fuel costs in the future. Reach out to a propane company near you for more information. 

• Tags: • 418 Words