There’s a lot to consider when trying to calculate the per gallon price of propane for your western North Carolina home. A number of factors affect the cost of propane, and it’s important to understand them. Lately we’ve seen an upswing in prices. We know that can be frustrating and a financial hardship for some of our customers, but we want to encourage you that propane remains one of the most cost-effective ways to heat your home and run your appliances. And propane’s efficiency means it helps reduce your carbon emissions as well.
Even though the per gallon price of propane may change from day to day, the price swings with propane tend to be more moderate when compared to those of heating oil, gasoline, and other fuels derived from crude oil.
This is largely because propane is a completely domestic form of energy. America is actually able to export about twice the quantity of propane that gets used here. This abundance gives our country supply security and helps moderate the pricing in the U.S.
This basic economic principle affects the price you pay for your propane. As we approach the colder months and the beginning of the heating season, demand for propane will increase. But the demand for propane goes beyond home heating.
Global demand for propane has increased because of its increased use as a petrochemical precursor. Petrochemicals are used to make things like plastic, paper, adhesives, and detergents. Petrochemical manufacturers are the largest consumers of propane.
Geopolitical factors like war and economic sanctions as well as natural disasters like earthquakes and hurricanes can impact crude oil and natural gas prices. Since propane is a by-product of both crude oil and natural gas, when the price of those fuels increases the price of propane eventually increases as well.
Certain factors have always influenced the price of propane: proximity of the supply, transportation bottlenecks, energy policy, and manufacturing trends. However, the past two years have brought additional variables: The cost to deliver fuel has increased. Covid-19 created workforce issues and supply chain delays that drove up the price of supplies, parts, tanks, and other materials.
Here are some ways you can reduce the price you pay for your propane:
James Oxygen & Supply is proud to be a family-owned company that is focused on service. We’re committed to providing our western North Carolina customers with quality propane at a fair price.
You can trust the professionals at James Oxygen & Supply. Contact us today to learn more.