Propane or liquefied petroleum gas (LPG) is among the leading fuels that millions of Americans use every day for different reasons, such as heating, clothes drying, cooking, and running certain types of vehicles and appliances. If you are using propane for any purpose, it makes sense to want to buy LP gas cost-effectively. Knowing what affects propane prices can help you get started, especially when you are looking for a new supplier. Here are some of the factors that can define the price of liquefied petroleum gas:
- Fees and services from the supplier – Propane retailers price their LPG based on a number of services, like fixed prices, automatic delivery, and budget payment plans. These can make the price vary from one retailer to another. Be sure to ask the retailer about the amount they are charging per gallon, and make sure that it is reasonable when compared with national or state averages.
- Your monthly payment plan – Some LP gas providers adjust monthly payments based on your actual usage and the actual gas price.
- Where propane is sourced – Usually, the farther you are from the source of propane, the higher its price is likely to be. This is because transportation costs are factored into the price. However, there are companies that are able to offer locally sourced propane, so you do not have to worry about high prices, which are often associated with propane from the Midwest and in the Gulf Coast.
- The climate – Propane tends to have higher prices in the winter or whenever it is cold because of the higher demand and limited supply. Prices are likely to stay high until the supplier can adapt and meet the exact demand of its clients.
The price of LPG is not the only factor that should influence your decision when choosing a supplier. When comparing suppliers and determining which one can provide the most cost-effective LPG, be sure to consider other factors like the quality of their service, reputation, years of experience or being in business, and their monthly payment plans. This way, you can be sure that you are getting affordable propane from a reliable supplier.