How competitive are your propane prices? When was the last time you shopped around and compare what you are paying for propane gas to other dealer’s prices? The first place to start is to know what the current market price for propane is. One way is to check the EIA weekly survey of propane prices. Each week from the beginning of October to the end of March, the Energy Information Agency publishes their findings. This shows the average residential and wholesale prices in the reporting states. Use this as a guide since prices can vary in different parts of your state.
What is the direction of the price of propane this winter? As usual prices have been going up since the summer. This is a normal seasonal pattern. Propane demand tends to increase in the fall for 2 reasons. First, farmers use propane to dry out their crops. If it has been a particularly wet and rainy harvest, then there will be even greater demand for propane gas.
The other reason is that about 1 million people in the United States use propane gas to heat their homes. Obviously has temperatures drop during the winter; the demand for propane will go up.
The Energy Information Administration has forecast a rise of about 8% this winter for propane gas prices. One of the reasons for this increase is the low inventory level of propane this year. Propane stocks are down about 5 million gallons compared to this time last year. If we have a typical or mild winter, those stocks should be enough. If we have a colder than normal winter, then you can expect to pay much higher prices for you propane.
Each week from October until March, the EIA releases the average price paid by residential users. These prices can be used as a guide to see if you are paying to much to fill your tank. Remember, price will vary due to transportation costs and other fees your dealer may tack on.
Follow propane price trends for Minnesota by checking here each week. Prices are updated each Wednesday during the heating season which runs from October to March each year.
State Of Emergency with Minnesota Propane Prices
Governor Dayton has recently declared a state of emergency regarding propane gas supplies. Prices have nearly doubled since the start of the winter heating season. This has become a “perfect storm” of sorts regarding the lack of supply and rising prices with LP Gas.
Propane supply was low coming into the winter due to demand by corn farmers to dry their wet crops this year. That coupled with the artic blasts we have been receiving has caused demand for propane to go up. This has forced prices to rise quite a bit.
Dealers are being forced to send trucks as far as Texas to obtain gas for their customers. The costs involved in bring those supplies here will also cause prices to rise.
Current Propane Gas Prices Minnesota
Mar 30, 2015
Mar 23, 2015
Mar 16, 2015
Mar 09, 2015
Mar 02, 2015
Feb 23, 2015
Feb 16, 2015
Feb 09, 2015
Feb 02, 2015
This is the last price reporting for the 2014-2015 heating season from the EIA. Price reporting will resume on October 2015.
Trying to find the best propane price for home use can be hard to do. Fortunately the Energy Information Agency conducts a survey each week during the winter season from October to March each year. They then release the weekly average price of propane for residential and wholesale use.
These are the last reported prices by he EIA for the 2014-2015 heating season. Price reporting will begin again in October 2015.
Propane Gas Prices, Why Do They Change?
Propane gas is a popular choice for heating your home, but at times propane gas prices can be very volatile. There are ways for the user of propane gas to save money by watching gas price trends and by timing their tank fill ups. Propane prices can change quite a bit from month to month if not from season to season. Let’s exam why propane prices change.
Propane is derived from crude oil refining and natural gas. Propane gas is a by-product of these two energy sources. Since it is a by-product, propane prices will generally follow the price movement of natural gas and crude oil. Since crude oil is the largest traded commodity, it is easy to track its price. Crude oil futures are traded in the New York Mercantile Exchange. Newspaper and Internet services track and report crude oil prices and natural gas prices daily from the exchange. This will make it easy for you to following the price trends.
Your location will affect the price you pay for propane. A majority of propane gas in the United States is stored in Mont Belvieu, Texas. Propane prices are generally cheaper in the Midwest as compared to the rest of the country. Transportation costs will increase the price you pay for your propane locally.
Supply and demand plays a major role in determining the price of propane. Take a page form economics 101. Price spikes can and do occur if there is severe cold weather in the area. Propane is produced year round, but if there is a cold snap, demand can suddenly rise and cause prices to jump. To increase supply, companies would need to import propane, but it could be several days to weeks before shipments would arrive to meet the demand.
So what is a homeowner to do to save money buying propane? First of all, find a reputable dealer. You can check with your local Better Business Bureau to see if there have been any complaints filed with the dealer. Secondly, start following crude oil and natural gas price trends. If you see prices rising or falling there, current propane gas prices will probably do the same.