Reasons Propane Prices Change

Many propane suppliers have put reasons that propane prices change on their company websites.  For example, suppliers may state that propane is a by-product of the natural gas extraction process and propane pricing may be impacted by this process.  Another reason may include the distance that propane is transported before it reaches the customer destination.  Another reason may be noted as 'seasonal demand'.  All of these reasons may impact the price of propane. 

However, why do some propane customers become upset with suppliers regarding pricing?  The reason can likely be narrowed down to the profit (aka margin) added to each propane gallon by a specific propane supplier.  If one propane supplier is charging customers approximately $4.00 per gallon and another propane supplier is changing another propane customer in the same area $1.50 per gallon, and a customer paying the higher price per gallon learns about this difference, that customer should be upset.  That customer should be VERY UPSET!

This underscores the importance of customers calling and checking pricing among multiple propane suppliers BEFORE each delivery.  If a supplier gets greedy, the price per gallon per gallon may rise through the roof - resulting in a propane price per gallon that is clearly above most or all of the other local propane suppliers.  Factor in the lack of price transparency.  If customers have no idea what their price per gallon is before each delivery (can't see a current price shown on the company website), the propane supplier is basically on the 'propane price honor system' to charge a competitive price per gallon.

Bottom Line: Don't put any propane supplier on the 'propane price honor system' to be fair with pricing.  As the late President Ronald Reagan said about the Russians regarding nuclear disarmament: 'Trust, but verify'.  The same should apply to propane customers and propane pricing.

It's your money, be careful and spend it wisely!