What Are the Major Factors That Affects Residential Propane Prices?

Ever wondered why residential propane prices fluctuate at times? You might be surprised with sudden price spikes that can endanger your budget for a month. Hence, it is important to know and understand the major factors that can affect the prices of residential propane and consider buying LP gas only from a reliable provider that can provide the most cost-effective custom monthly payment plan. Here are the factors that can affect residential propane prices:

• Supply and demand – Weather, inventory levels, production, and timing can affect the price of residential propane. More households need propane in the winter, resulting in a level of scarcity that can cause surges in prices. Likewise, if the fuel is in high demand in another state, it will affect the prices in other areas, too.

• Fees from the propane provider – Sometimes, residential propane prices can be surprisingly higher or lower depending on the provider due to the costs that are part of the service. Hence, it is important to buy propane only from a provider who can be transparent with all the fees that are included in your monthly bill. Some of these fees may include automatic delivery, tank rent, delivery fee, regulatory fees, installation, and late charges. There could be fees related with diagnostics, early termination, emergency services, and returned checks, too.

• The prices of crude oil – Keep in mind that propane comes from the production of crude oil. Hence, it makes sense for residential propane prices to spike when crude oil prices increase. However, the increase will not be equal to the price of crude oil.

• Your proximity to the source – The closer you are to the distribution point the lower residential propane prices will be. More than 90 percent of the propane used in the US is domestically produced, and the rest comes from Canada.

Is It Worth Converting from Oil to Propane?

When searching for cost-effective fuel for cooking, heating, and clothes drying, it is likely that you have come across the benefits of propane and the claims about liquefied petroleum gas being low-cost and environmentally friendly than oil. If you are currently using oil, you might be thinking of converting from that to propane. However, there are certain factors you must consider before converting from oil to propane to make sure that doing so will be worth it. For instance, you need to take note of your lifestyle and your budget, and upgrade your appliances to products that are designed to run on LPG

You need to consider where you will buy propane, too. A reputable and seasoned LP gas provider should be able to help you when converting your home from oil to propane. Consider a company that has been serving the US for more than six decades and known for providing fair prices consistently to all their customers. Moreover, be sure to explore the LP gas company’s payment plans. Experienced providers offer flexible billing and payment options designed to meet every customer’s propane needs. Consider a plan that makes sense to your budget and your lifestyle.

Converting from oil to propane makes sense because the latter is a better producer of heat. Its properties allow it to generate more heat efficiently compared to oil and natural gas. This way, you should be able to save up to 30 percent every year when you heat water using propane, and around 50 percent if you dry your clothes with a propane dryer. A whole tank of water can be heated in about 20 minutes with propane, too, and you can enjoy a stream of hot water much longer with it.

Propane is a good choice if you want to reduce your carbon footprint. The fuel is considered clean and it is listed in the Energy Policy Act of 1992 and the 1990 Clean Air Act. With a propane furnace, you can reduce carbon emissions from your home by up to 90 percent. This way, converting from oil to propane is worth it if you are conscious of the environment.