Traditionaly Propane has been a lot less expensive... but in todays market energy prices have become unpredictable.
Propane prices vary in different parts of the country for two key reasons that are related to supply and demand: weather influences and location.
In the short-term, the demand for propane among residential and commercial customers is affected significantly by weather. Because weather conditions change rapidly, large and sudden shifts in demand can occur, creating imbalances that result in price movements.
These weather factors can also influence the propane distribution system. As with all energy sources, propane prices are influenced by the systems required to transport the energy source from where it is produced to where it is used, whether through pipelines, ships, or trucks.
Propane prices are also influenced by proximity of the customer to the supply. In an area such as the Gulf Coast, customers are close to major suppliers and shipping ports, so the effort needed to get propane to its customers is minimal. Those customers who live farther away usually pay higher prices when transportation costs are added.
Source: Propane Prices, What Consumers Should Know, Energy Information Administration, May 2006.
While the factors that contribute to higher fuel prices cannot be controlled by propane retailers or consumers, there are some simple steps customers can take to lower their energy bill year-round.
The industry encourages homeowners to save on energy costs by following this three-step energy plan:
Explore fuel payment plan options to spread your projected annual costs over many months, balancing the costs of seasonally higher bills. Many propane companies offer a “fixed-price” option, and can “lock-in” a price. Call your propane retailer to see if such an option is available.
Set up a regular delivery schedule with your retailer. Consider filling your tank before the start of the heating season rather than waiting until it is empty.
The federal government is offering a tax credit of up to $500 for qualifying energy-saving improvements made during the 2006 and 2007 calendar years. Credits are available for many home improvements including high-efficiency heating and cooling equipment such as propane water heaters and furnaces. For more information visit
www.energytaxincentives.org.
Customers can also lower their overall energy bills by making a few small changes in the home:
Protect against drafts by caulking and weather-stripping around windows, doors, and other openings such as ducts, fans, and vents.
Inspect and tune-up your residential heating system regularly for efficiency. Contact your local propane retailer to inquire about a home heating system inspection. A properly working heating system is more efficient and will save you money.
Change your furnace filter monthly. Clean filters will help your heating system work more efficiently. If on a monthly payment plan, use receipt of your propane bill as a reminder.
Invest in a furnace thermostat timer that can save money by lowering your home’s temperature when you are not at home. You can cut annual heating bills by as much as 10 percent per year by turning your thermostat back 10-15 percent for eight hours per day.
Switch to a propane water heater, which provides significant energy efficiency over an electric water heater. Over time, propane water heaters can cost one-third less to operate and recover hot water twice as quickly as electric water heaters.
When using a water heater, turn it down from the standard 140 degrees to 130 degrees. You could save more than 10 percent on your water-heating bill.
Increase your water heater’s efficiency by draining it every six months to remove lime deposits and sediment.
Install flow-restricting showerheads. You can reduce hot water usage by up to 50 percent without affecting shower pressure.
Run washing machines --and clothes dryers-- with a full load.
Close vents and doors in unused rooms. Make sure your attic and basement are properly insulated
Source: WHAT’S UP WITH PROPANE AND OTHER FUEL PRICES?