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What Affects the Price of Propane?

Price tag

It’s one of the most commonly asked questions we get: “How much will my residential propane cost this year?”

The truthful answer, every year, is “we don’t know.”

It’s not a copout: we don’t know exactly how much propane will cost in a given year because propane prices are the product of a complex set of factors (if anyone tells you they know for sure whether the price of propane will go up or down, they’re pulling your leg…to put it mildly).

One of the most important of those factors is demand – which is largely based on weather (not the easiest thing to predict these days, even for the experts). If temperatures in the Northeast U.S. are extremely cold, demand for propane increases – even if the rest of the country is experiencing relatively warm weather (most of the propane consumed in the U.S. is used to heat homes in our neck of the woods). This is one of the reasons why buying your propane in the offseason – like now – is usually a good idea.

Of course demand alone can’t account for the price you pay for propane. Economic and political factors at home and abroad also have a big impact. Then there are dealer expenses – costs we incur to cover requirements imposed on us by local, state, and federal government such as insurance, safety and compliance training, municipal fees, employee background checks, and more (for a longer list, check out Propane101.com).

A budget plan can help

One way to manage the cost of your propane is to enroll in a propane budget payment plan. The Irish Propane Budget Plan divides an estimate of the cost of a year’s worth of propane into 12 level payments, which eliminates wintertime heating bill surprises. Use more propane than expected and we’ll schedule a one-time make-up payment; use less propane than expected and we’ll roll the credit balance forward.

There are no finance or enrollment fees for this service.

Looking for our preseason propane prices in New York State, including our Buffalo and Rochester service areas? We can help. Contact us today to learn more, or to enroll in the Irish Propane Budget Plan!

The Irish Family of Companies