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This forum is for your regular heating fuels such as Oil, Propane, Kerosene, etc. Feel free to complain about prices, the government and how much it sucks to heat your house these days.
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Why is propane so expensive?    
Posted By: flyatnight
10/26/2008 2:55:17 PM
Posts: 1
I live in Tucson, Az. When I first started buying propane for my 250 gallon tank in 1994, it was $1.00/gallon. Gasoline at that time was right at $2.00 per gallon. Now(2008) propane is between 4 and 5 dollars per gallon (thats the so-called discount bulk rate when you fill up your tank), even though gasoline is now down to about $2.69 per gallon here in Tucson. So why is propane, which was until fairly recently, right at half the price per gallon, that of gasoline, now nearly double the price? And in case anyone is thinking this could have something to do with the recently soaring oil prices, and propane just hasn't come down yet, it was also this expenive last year, before the cost of gasoline skyrocketed. Anyone understand this?



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carlo Posted: 10/27/2008 11:00:54 AM
According to the Energy Information Administration propane price is mostly tied to crude oil because it is a by product of heating oil being refined and it competes directly with heating oil. Here are a couple of charts that show the relationship. All of this can also be found on the EAI website

How propane gets to your house


Propane's relationship with oil


pudge2 Posted: 11/7/2008 7:59:50 AM

Dudley, Massachusetts
Thats interesting, I didn't realize propane was tied to oil like that

Burn Baby Burn
KrisNY Posted: 11/29/2008 1:24:17 PM

Dansville, New York
That is great helpful information. I wondered too. I thought it had something to do with the price of gas ~ not oil. That would make sense. So when does the price of crude oil drop?

Do you think it's a seasonal price? I think it's cheaper in the summer when there is less demand.

Always looking for alternatives :)
Simplyme Posted: 11/29/2008 2:02:33 PM
I just live over in Phoenix, AZ and had been curious about the same thing. It is hard to make that purchase right now when the old cost (half that of gas) is still so fresh in my mind. Though, I can see why it has increased I am hoping this too will soon start to show a decrease in cost.


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