Let’s be candid: pretty much everything you can think of is a bit more expensive these days.
Whether you’re walking down the grocery aisle or filling up your tank at the gas station, you’re paying more than you did a year ago. Lingering supply chain issues, high inflation, and market speculation—are all direct contributors to higher prices.
Energy prices have been especially volatile in 2022, though homeowners who use propane can take some solace that its price has risen less than many other fuels. Propane is U.S.-made. While not wholly unaffected by the global energy market, it’s more stable, pricewise.
At Superior Propane Inc., we pride ourselves on offering dependable propane delivery at a fair price. Here are some answers to common questions about why propane costs what it does.
Like all fuels, propane prices fluctuate daily…and sometimes hourly. The national average for residential propane has been between $2 and $3 per gallon in the last year. Of course, depending on your specific area of the country, you might be paying more than that.
Propane is a coproduct of the natural gas and oil refining process. Its price tracks those fuels to a certain extent. Although about 70 percent of propane comes from natural gas extraction, oil’s price is the best metric to determine where propane is headed. This is because oil and propane are close market competitors.
Consumer demand is a significant driver of propane prices in the U.S.
The U.S. exports more propane than we use domestically. Global demand is higher than ever and likely to increase.
One huge international factor pushing up the price of propane is its use as a petrochemical feedstock. Petrochemical manufacturers are integral in producing plastic, paper, adhesives, detergents, and other products. These manufacturers are now the largest consumers of propane.
The war in Ukraine may affect global demand for U.S. propane soon as well. If the E.U. aims to cut off Russian fuel imports, American propane exports will have to contribute to making up some of the difference.
We all hope that the price of propane remains stable and affordable as we go through the heating season.
If you need a propane company that you can trust for reliable delivery and fair pricing, we want to be your home energy partner. We have the most dependable delivery team in the region. Plus, we have payment programs to better stabilize your fuel budget.
Don’t hesitate to contact us. The Superior Propane Inc. team is standing by and ready to help.