If you remember the polar vortex in January and the record demand for propane at that time, then you understand why propane users should buy now. Last year’s record corn crop caused a huge spike in demand as farmers needed gas try dry the harvested corn. The harvest this year is estimated to be 3% higher than last year, so we might see prices rise again, especially if we have another very cold winter.
The chart below from the US Energy Information Administration shows the weekly price of a gallon for the last five years, with the heavy blue line being the most recent year. You can see that prices have been sliding down at a steady rate, but with cold weather coming soon, the price is expected to start rising again.
Although only about 5% of Americans use propane for residential heating, that is a lot of people. Many Hoosier families were really hurt when the price doubled from less than $2 per gallon to over $4 per gallon in Indiana.
Experts recommend that propane users be proactive now while the weather is still warm. They suggest completely filling storage tanks now while the price is down, and get a pricing agreement with a local dealer. You need to know in advance how much you’ll be paying regardless of the weather conditions. Waiting until it gets cold will leave you with no leverage and you’ll have to pay whatever the dealers are asking.
You also want to be sure your furnace or boiler is operating at top efficiency, not wasting any of the propane. We have a tune up special running right now – only $59 – that will get you ready for winter.
Give us a call today for the tuneup, and call your propane dealer now to lock in prices. You can trust us at TA Kaiser Heating and Air. We are looking out for you!