Propane is one of the most affordable fuel sources available, but the price does tend to fluctuate with the seasons. Like anything else, the law of supply and demand does have an impact on the cost of propane gas, but the price you pay also depends on a broad array of other factors. Below are just a few elements that can influence the cost of heating your home or firing up your outdoor stove.

What Determines the Cost of Propane?

1. Crude Oil Prices

A little over half of the nation’s propane supply is extracted from natural gas, while the rest actually comes from crude oil. The price of a barrel of oil can vary widely, sometimes based on events on the other side of the world. In general, propane prices tend to rise and fall with the value of crude oil and gasoline.

2. The Weather

During the summer, most dealers have a healthy supply of propane available, which helps keep prices low. However, they might start to run out if the winter is especially long or cold, so you’ll likely see prices rise as temperatures drop. Because propane is a national market, your local prices might change if other parts of the country are experiencing unusual weather conditions and higher demand.

3. Your Location

In addition to the cost of raw material, propane prices also include pipelines, trucks, and other logistical expenses. If you live near a distribution center, most of which are located in the Midwest and along the Gulf Cost, your propane costs may be lower and more reliable. On the other hand, if your gas has to be shipped several hundred miles, your prices will reflect the additional transportation costs.

As Loveland, OH’s, premier propane distributor, Tri-County Propane Inc. proudly offers reliable service to homes and businesses throughout Clermont County. Along with fuel sales and delivery, they also offer a comprehensive range of equipment, parts, and accessories for almost any application. Visit their website for more on their services, or call (513) 583-1868 to request a quote and schedule a delivery.