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What Influences Propane Prices?

What will propane gas cost to fill your tank this year? What kind of price can I expect from my propane supplier? Propane prices occasionally spike, increasing disproportionately beyond that expected from normal supply/demand fluctuations. The main cause appears to lie in the logistical difficulty of obtaining resupply during the peak heating season. Because propane is produced at a relatively steady rate year-round by refineries and gas processing plants, there is no ready source of incremental production when supplies run low.

Propane wholesalers and retailers are forced to pay higher prices as propane markets are bid higher due to dwindling supply. Consequently, higher propane prices are simply passed on to consumers. Imports do not offer much cushion for unexpected demand increases or supply shortages due to the long travel time. On the other hand, when propane prices do spike, the petrochemical sector may cut back on its use, thus freeing up supplies for other uses.

Propane prices are subject to a number of influences, some common to all petroleum products, and others unique to propane. Because propane is portable, it can serve many different markets, from fueling barbecue grills to producing petrochemicals. The price of propane in these markets is influenced by many factors, including the prices of competing fuels in each market; the distance propane has to travel to reach a customer; and the volumes used by a customer. More especially, propane prices are affected by Crude Oil and Natural Gas Prices. Although propane is produced from both crude oil refining and natural gas processing, its price is influenced mainly by the cost of crude oil. This is because propane competes mostly with crude oil-based fuels.

The EIA updates the weekly prices from October to March each year.

12/28/2015 1/4/2016 1/11/2016 1/18/2016
East Coast (PADD 1)
2.713
2.716 2.733 2.736
New England (PADD 1A)
2.692
2.711 2.723 2.742
Connecticut
2.531
2.491 2.473 2.472
Maine
2.201
2.204 2.217 2.204
Massachusetts 2.775 2.829 2.862 2.868
New Hampshire 2.848 2.861 2.868 2.901
Rhode Island 3.314 3.325 3.346 3.343
Vermont 2.985 3.028 3.037 3.107
Central Atlantic (PADD 1B)
2.66
2.64 2.666 2.666
Delaware
2.773
2.826 2.822 2.827
Maryland
2.653
2.665 2.678 2.681
New Jersey 3.279 3.306 3.308 3.304
New York 2.437 2.417 2.434 2.475
Pennsylvania 2.729 2.68 2.727 2.685
Lower Atlantic (PADD 1C)
2.789
2.807 2.818 2.815
Florida
4.545
4.637 4.643 4.653
Georgia
2.026
2.053 2.061 2.053
North Carolina 2.348 2.331 2.348 2.342
Virginia 2.705 2.707 2.711 2.707
Midwest (PADD 2)
1.454
1.459 1.469 1.476
Illinois
1.312
1.324 1.326 1.337
Indiana
1.649
1.681 1.695 1.726
Iowa 1.008 1.015 1.01 1.009
Kansas 1.157 1.156 1.152 1.147
Kentucky 1.776 1.792 1.828 1.824
Michigan 1.751 1.75 1.761 1.764
Minnesota 1.299 1.308 1.315 1.323
Missouri 1.364 1.373 1.399 1.407
Nebraska 1.034 1.029 1.033 1.019
North Dakota 1.011 1.011 1.009 1.009
Ohio 2.13 2.086 2.128 2.15
Oklahoma 1.533 1.526 1.525 1.526
South Dakota 1.077 1.075 1.077 1.076
Tennessee 3.089 3.162 3.172 3.181
Wisconsin 1.214 1.214 1.213 1.221
Gulf Coast (PADD 3)
2.18
2.201 2.211 2.212
Alabama
2.563
2.613 2.623 2.639
Arkansas
1.96
1.986 2.004 2.015
Mississippi 2.046 2.037 2.053 2.054
Texas 2.119 2.14 2.143 2.127
Rocky Mountain (PADD 4)
1.826
1.833 1.84 1.845
Colorado
1.786
1.805 1.809 1.814
Idaho
2.082
2.099 2.154 2.154
Montana 1.578 1.569 1.567 1.577
Utah 2.304 2.304 2.301 2.298

 

Use these prices as a guide when shopping for prices from propane dealers.

 

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