Propane is similar to gasoline in that not only is it priced to sell by the gallon, the price for a gallon of propane goes up and down. The range of costs per gallon for propane, however, can be a bit more dramatic than the cost of gasoline. Here are a few reasons why your Ohio propane costs oscillate throughout the calendar year.
It first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will increase.
Of course, the demand and supply of propane also directly affects price. While this gas is produced consistently throughout the calendar year, there are times of the year when the demand is much lower. During the hot, summer months, people use much less propane as they don’t need to heat their homes. So the price is simply lower in July than it would be in January when you are subject to freezing temperatures. It is also is important to note that winter weather can begin long before the first day of winter and can extend well into spring, and longer months of cold increase demand, decrease the supply and drive up the cost per gallon.
This is why propane companies typically suggest that their patrons pre-purchase large amounts of propane when the cost is very low. A customer can save hundreds of thousands of dollars off their yearly propane costs simply by purchasing when the weather is hot and when the demand is low.
If you need Medina propane, Cincinnati propane, Dayton propane, Indianapolis propane or propane delivery throughout Ohio or Indiana, Thrifty Propane delivers to both of these states as well as several other states. They sell only HD-5 propane, which is the purest, cleanest propane available.
Cath Buhr enjoys writing reviews on propane retailers. For more details about Cincinnati propane retailers or to know local Baltimore propane prices, please check out the Thrifty Propane website now.
The post Why Propane Costs Fluctuate appeared first on downshar.com.
Why Propane Costs Fluctuate
via downshar http://ift.tt/UfhFW0
0 commentaires:
Enregistrer un commentaire