Propane gas prices will reach 13 year low in 2015
Consumers that use propane for cooking, heating, or fueling other appliances are set to feel a relief on their wallets. A North American propane gas surplus means lower prices for consumer.
Why there is a surplus
The propane surplus comes just a year after a nationwide propane shortage in January and February 2014. During the shortage, Pennsylvania consumers saw a 10.2% spike in propane prices – paying as much as %3.90/gallon.
So how did we reach a propane surplus?
- The 2014 shortage prompted consumers to buy propane in bulk. Users needed less propane during the summer and autumn months.
- A mild 2015 winter decreased demand for propane. Suppliers could not rid of stockpiles.
- Record production of natural gas has doubled the supply of propane (propane is a by-product of natural gas refining).
The compounding factors led to a surplus of propane in the USA and Canada.
Propane prices projected to remain low for 2-3 years
Because North America is still the largest producer and consumer of propane gas, analysts predictconsumers can expect to see lower prices for several years. Propane manufacturers are working towards expanding international exports of propane gas.
Propane Prices in Pennsylvania generally 19% higher than national average
Pennsylvania propane prices are generally higher than the national average, but remain competitive with the east cost region.
PA propane averages 19% higher than the national average. The PA average cost of propane is $2.96 in the winter months in PA. The US average is approximately $2.44 during the same period.
Pre-buy propane to take advantage fixed-rate prices
Propane prices will stay lower than recent years in the months to come. But as demand increases in the winter months, prices will inevitably increase.
Consumers can take advantage of fixed-rate propane prices by pre-buying propane before winter prices rise. Kauffman’s pre-buy program starts August 1 – September 15 and is valid for deliveries from October thru April 30.