Learn More About What Impacts the Price You Pay for Propane Gas
You’ve probably noticed that prices for nearly everything has been going up in recent months. Whether it’s groceries, filling up the gas tank in your car, or your current holiday season shopping, every purchase is taking a bigger bite out of your bank account.
Unfortunately, propane prices are also heading in that direction right at the start of heating season 2021-2022. In fact, propane prices are at their highest rates since 2014.
Increases are Seen Across the Entire Energy Sector
This isn’t unique to just propane—energy prices are going up across the board. Gasoline prices are up more than $1 per gallon from this time a year ago. The price for natural gas has increased by more than 150%. Because power generation is heavily dependent on power plants fueled by natural gas, electricity rates are going up as well. Crude oil prices are also at their highest levels since 2014—currently standing at more than $80 per barrel.
We at Blue Flame understand these propane price increases can present challenges for you. It’s hard for us, too. We’re doing everything we can to minimize these increases. It should be known that when propane prices go up, we don’t make more money. It’s quite the opposite.
Why is that? Think about when food prices increase. Your local grocery store isn’t profiting off those higher prices. If anyone’s profiting, it’s the big corporations and Wall Street investors behind the scenes.
For example, when propane prices go up, our customers usually cut back their propane usage to keep their costs under control. We need to tap into our lines of credit more. Our phones ring off the hook with questions and concerns. Simply put, the sooner energy prices drop, the happier we will be, too.
Blue Flame is Here to Help
If these price increases are making it challenging for you to pay your Blue Flame bill, please get in touch with us before you fall behind and we’ll help you in any way possible to work out a solution. You can also seek assistance from your area’s Low Income Energy Assistance Program (LIHEAP).
Please visit the links above to learn more about the programs available in your respective state.
The Factors Involved in Propane Pricing
Propane is manufactured from commodities that are bought and sold on the global market. Natural gas accounts for about 70% of that, with crude oil making up the rest. Because of this, propane prices may change unpredictably based on unanticipated circumstances.
Some of the factors that influence propane prices include:
- Supply and Demand. A commodity’s price can vary widely based on demand. If the winter is harsh and lengthy, prices will rise. The increase in propane exports to meet global demand might influence our national supply of propane. Propane prices also vary based on the season and production and inventory levels. That last one is another incentive to use us to fill your propane tank in the late spring and early summer months, otherwise known as the “shoulder seasons.”
- Weather. Extreme low temperatures and inclement weather can have a detrimental influence on propane production, resulting in a scarcity of propane that raises prices.
- Proximity of Supply. The price of propane will nearly always be lower the closer you live to a major distribution center.
- Current Events. Propane prices are affected by a variety of events, both local and global. Oil spills, pipeline failures, ransomware attacks, geopolitical conflicts and instability in the Middle East, and OPEC production levels are all examples of things that can impact what you pay for your propane. The COVID-19 pandemic has greatly disrupted the supply chain for many industries in the U.S., including that of propane.
- Market Need. In the winter, when consumers need propane for home heating, they often pay more for it. When propane-fueled vehicles and equipment are used more frequently in commercial operations, commercial usage of propane peaks during the warmer months.
We’ve been in business for many years and have deep roots in the New Jersey and Pennsylvania communities. We have secure access to supply. We are doing everything possible to ensure we can deliver—even if other companies cannot—no matter the cost or difficulty we face.
Contact Blue Flame with any questions or concerns you have about your propane costs today—we’re standing by and are ready to help wherever we can.