An Inside Look at Propane Pricing

Because propane is a byproduct of domestic natural gas processing and sometimes crude oil refining, the price of propane falls between those two commodities. Compared to conventional fuels and other alternative energy sources, propane generally costs less, even as fuel prices fluctuate.

Seasonal Demand

Demand for propane can impact its price. In colder months, states with heavier home heating demands require more propane for the winter. This increased demand on supply can cause propane prices to increase with the season. Local propane providers work hard to keep up with deliveries during these peak demand times, so you can have peace of mind year-round.

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