Whether you rely on propane to power your grill or heat your home, you may wonder why the price fluctuates. Several factors influence the cost of this fuel. Knowing the following information can help you determine the best time to order a supply for propane refills. 

What Impacts the Cost of Propane?

1. Oil Costs

Propane is a byproduct that’s produced as crude oil is processed and used to manufacture natural gas. As a result, rising prices in crude oil will ultimately cause an increase in the cost of propane.

If you rely heavily on the use of this type of gas, it may be worthwhile to keep an eye on oil prices. Buying propane refills when oil prices are low can save you money in the long run.

2. Transportation

There are storage facilities for propane tanks and bottles at various locations throughout the United States. However, your distance from the nearest storage facility will play a part in determining how much it will cost to get a replacement or refill.

In addition to accounting for the cost of producing propane, the cost of hiring a delivery service to bring the propane to your doorstep will also play a part. The farther you are from a storage facility, the greater the transportation costs for delivering the order.

3. Demand 

A greater demand will increase the cost of propane. This fuel is used for several purposes, including fueling forklifts, farm equipment, home grills, and gas stoves.

As the seasons change and people take advantage of the warmer weather to engage in more outdoor activities, there’s an increase in the consumption of propane. As a result, costs will rise to help propane producers keep up with the demand.

4. Exports

The United States also exports propane to other countries, which can also increase the demand. In other countries, propane is more commonly used as fuel for furnaces and heaters. This means the demand for propane may also rise in the winter months, when more people throughout the world use the fuel to power their heating systems. 

If you need propane refills to power your equipment, appliances, or heating system, contact Liberty Propane in Hinesville, GA. They provide installations, inspections, and 24-hour emergency service to help you use propane safely and effectively. To learn more about their services, visit them online. To speak directly with a helpful representative, call (912) 408-3040.