Propane Prices – Historical Graph
Real-time chart of historical daily propane prices. The prices are down in U.S. dollars per GAL.
- The average price in the past 3 days is
- The average price in the past 7 days is
- The average price in the past 30 days is
- The average price in the past 365 days is
Popular questions about propane prices:
Propane Prices Explained
As you can see propane prices are fluctuating. But why is that? And is there a way to predict the price of propane?
Why are propane prices fluctuating?
Propane prices fluctuate mostly in their seasonal demand however other contributing factors drive its price in the market. Here are some:
1. Supply and Demand
Companies extract and sell propane throughout the year but its sharp price hike is evident during the fall and summer seasons.
Demand from house owners pushes the spike as propane is essential to generate house heat during the cold season.
2. Natural Gas and Crude Oil Prices
Propane is a byproduct of natural gas and crude oil.
Therefore, any natural gas or crude price movement determines propane market value. Similarly, when production is low in any of these two, it will directly impact propane prices
3. Supply Location
Transportation and distance are also the determining factors of propane prices.
For example, although the US is the top propane producer, it still imports an average of 3,500 propane barrels from Canada every day.
The importing and transporting process takes time, labor, and resources which add up to propane market value.
Since propane is a byproduct of nature, its production capacity depends on natural gas and crude oil.
Thus, low production in any of these two will result in low propane production. This influences its supply availability in the market.
Winter records the highest propane demand and it’s also when supply and logistics experience the most delays because of the harsh weather.
Thus, this inevitable scenario also drives propane prices up.
Which variables impact the price of propane?
- Supply and Demand
- International Trade
- Crude Oil Prices
- Production and Distribution Costs
- Government Regulations
Where does propane come from?
Propane is a hydrocarbon found along with natural gas and crude oil deposits. It is processed from natural gas processing and crude oil refining through extraction.
Fractionation is a propane extraction process. This process involves heating and cooling natural gas or crude oil to separate different components. Propane’s boiling point is lower compared to other hydrocarbons.
Gas from boiled hydrocarbons is collected, stored in pressurized tanks, and transported by truck, van, or ship. Propane’s usage is for heating, cooking, transportation, and other industrial application processes.
The top propane producers in the world are the United States, Saudi Arabia, Canada, China, Russia, and the United Arab Emirates.
When is the propane season?
Propane production is present throughout the year however, certain seasons prove its marketability in the market.
Since propane’s main function is a heating fuel for homes and businesses, it is just right that the fall and winter seasons are their highest demand peak.
In countries with harsh winter seasons such as Canada, Russia, and Norway, propane demand starts earlier and lasts longer while in countries with milder winter propane demand is relatively short.
During winter seasons, one important factor is usually attributed to propane supply, demand, and prices; supply disruptions due to extreme weather conditions such as blizzards. Apart from this, common reasons such as natural gas and crude oil prices always come to play in propane price fluctuation.