Propane Demand 2021

Propane Demand 2021

Like everything else propane has seen a surge in its price per gallon.  Unlike gas and diesel, propane’s primary function it the U.S. is heating so its highest demand is in the winter.  During the spring and summer months propane is produced and stored in preparation for the winter heating season.  Normally we see propane prices in the summer lower due to the lack of demand, but this summer that wasn’t the case.  We saw propane bottom out around early May and then begin its climb upwards.  The main reason for this was the record exports overseas of propane which didn’t allow us to have normal builds of propane we usually see in the summer.  This allowed the speculators to drive the price up in preparation for a lower-than-normal build of propane going into the winter. Prices have leveled off the last week because of the mild fall we have experienced through out the country.  So, we sit in a holding pattern right now waiting to see how cold this winter will be.  If it’s a mild winter and exports fall off, we could see prices go down.  If exports continue at this pace and we have a cold winter the propane price could get higher.  As a company we want propane prices to be as cheap as possible so more people use propane, but as the retailer we have literally no control over what the market charges us we are completely at the mercy the producers. When prices get higher like this, we look at maybe some ways to save money in other areas and put less burden on the customer, but in this market that’s virtually impossible.  We have seen increase on cost of tanks, trucks, fuel, employees the list goes on and on.  So, for the time being we are stuck with higher prices hopefully old man winter goes easy on us.

Cordially,
John Buller and Sons.

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