What is the Price of Propane

This is a common customer question that is asked daily, in the summer months and winter months alike. There are more factors than just one that comprise the actual price of propane per gallon.

Propane is a commodity that is refined from other commodities and is traded on a worldwide market. Due to the nature of commodities, many factors can cause prices to fluctuate like we are seeing today. Seasonal demand, climate change, exports, unforeseen economic and political factors, weather, pipelines, employee availability, etc. These are factors that are beyond any local supplier’s control, but we can still manage our own internal factors to a certain degree.

Locally, our state and federal government provides codes and guidelines that must be adhered to at all times. We not only have to pay for the propane that we bring to your home or business, we also have equipment to maintain, fuel for our delivery/service vehicles and employees to pay (and associated taxes). Other factors of doing business in this highly regulated industry include every type of insurance we must carry, employee continuing education, safety audits, OSHA compliance, hazardous materials reporting and compliance training.

Shopping around for a cheaper price per gallon between propane companies is not always the correct path for customers to take; in hopes of saving a few cents per gallon. Most companies have a way of tracking usage. Switching companies takes all of that data and makes you start from square one, therefore not having your history to compare and forecast future deliveries. Cheapest price doesn’t always mean the best service or the safest practices. Having a good working relationship with your provider is priceless; knowing you can count on your local neighbors for timely deliveries and quality service work, especially when times get tough.