The domestic demand for propane continues to grow, but only 20 percent of that demand comes from domestic residential and commercial users.
Fremont, CA: As you plan propane purchases for your home heating and agricultural needs, it's no surprise you're experiencing some price shock due to the pandemic, geopolitical pressures, and changing supply and demand dynamics. The domestic demand for propane continues to grow, but only 20 percent of that demand comes from domestic residential and commercial users. Market share is increasing as international demand for U.S. products increases.
During the last ten years, propane shipments have grown tenfold. As many as 80 percent of propane production can now be exported on any given week. Inventories remain tight due to sluggish propane production to meet increasing global demand. In the two winters before, propane supplies were plentiful and quickly reached surplus by early summer, making seasonal prices cheaper. As a result, suppliers have shifted their attention to a growing, consistent, year-round market known as U.S. exports of liquefied petroleum gas.
Follow these tips to help protect in this volatile market.
1.Be cautious when proceeding
2. You may have to wait for a seasonal price drop that may never come because of the many unpredictable factors affecting propane prices today.
3. Make sure you lock in your gallons as soon as possible
4. Plan ahead rather than waiting for low prices. You may be able to lock in your propane gallons months in advance. It is increasingly important to ensure that you have a reliable supply.
5. Check out the tank monitor options at your local propane retailer
6. You and your propane provider can assess your needs in real time by monitoring your supply and using any available keep-fill services provided by your retailer.
7. Your propane provider should be kept in close contact
8. You need to have a strong relationship with your propane provider above all else. Make sure your propane retailer is aware of any changes that may impact your propane usage and understand what solutions are available to you. Your propane retailer is your first line of defense in a market that is constantly changing.
