Questions and Answers About Propane Pricing

October 20, 2021 ____ Propane Answers

Supply chain issues and product shortages are being felt across the board, and the propane/fuel industry is no exception.

Paraco has always been and always will be committed to offering you a fair and competitive price for your home heat.

To provide some clarity on the issue, here are answers to our 4 most commonly-asked questions about propane price.

Why have my propane costs gone up?

Energy costs have been in the news lately as costs have escalated to multi-year highs amid post covid reopening. A recent article from the EIA (US Energy Information administration), details the expected increases retail customers can expect to pay this year for all energy supplies.

Specifically, wholesale propane costing at the terminal is up 200% since last year at this time. These increases are being driven by very low inventories (see image), continued high export demand, and no growth in production.

When will my propane pricing come down?

If the price of propane rises, The higher costs will likely last through the winter. Once demand decreases and production outpaces demand, prices should return to lower levels.

What will happen to the cost of my fuel once the introductory rate has expired?

Your price will revert to the market rate. The price you pay will be based on the market cost plus your annual consumption; the more propane you use, the better the rate we can offer you.

How often will the price of propane fuel fluctuate?

Unfortunately, there is no way to predict how often the price will fluctuate. However, we can guarantee that we will always give you a fair, competitive rate.

Have more questions? We’re ready to help. Contact us!


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