The factors that contribute to propane prices in Hudson Valley, NY
If you review a year’s worth of statements for your propane delivery from Kimlin Energy, you may notice that the price you are paying for propane can go up and down over that time.
Propane pricing isn’t just based on one thing. It’s much more complicated than that.
Propane is refined from commodities that are traded in the global market. Natural gas makes up about 70%, followed by crude oil. Because of that, the price of propane can fluctuate depending on unforeseen factors.
Some of the factors that influence propane prices include:
- Supply and demand. The price of a commodity can fluctuate greatly based on need. If winter is harsh and long, prices will go up. The increase in propane exports to meet global demand can impact our nation’s propane supply. Production and inventory levels and the time of year also have an impact on propane pricing. That last one is good reason why the late spring and early summer months, what are called the “shoulder seasons,” are often a great time to have us fill your propane tank.
- Weather. Cold temperatures and bad weather will not only impact supply or demand; they can also have an influence on propane creation, resulting in a scarcity of propane that raises prices.
- Proximity of supply. The cost of propane will be lower the closer you live to a major distribution point.
- Current events. Things happening nearby or around the world can have an impact on fuel prices, such as oil spills, pipeline failures, hacking for ransom, geopolitical conflicts or instability and the COVID-19 pandemic, which has greatly disrupted the supply chain for many industries in the U.S.
- Market need. Customers will pay more for propane in the winter when they require it most for home heating. Commercial use of propane peaks in the warmer months when propane-powered vehicles and equipment are being used more frequently.
All of these factors together make propane pricing highly unpredictable, which is why prices can vary considerably and change quickly.
How Kimlin Energy provides security for your propane supply
At Kimlin Energy, we do our best to keep our propane prices as low as possible. One way we do that is by ensuring a reliable supply of propane, so we are not caught short and need to buy a lot of propane when prices are higher. Here are some of the ways that we do this:
- Kimlin Energy is an established company. We aren’t some fly-by-night discounter. Our nearly 40 years in business gives us the knowledge and experience to know how to keep a steady and reliable supply of propane on hand. We have long, solid relationships with our vendors.
- We have plenty of propane storage. Kimlin Energy has propane storage facilities all over Ulster County and our Hudson Valley service area. Being able to store large quantities of propane allows us to better ride out price spikes so we can avoid passing those on to our customers.
- We have a large delivery fleet. Thanks to our multiple propane delivery trucks, we can provide efficient service, which helps keep costs down. Our Automatic Delivery plan lets us streamline each day’s deliveries so we can serve the most customers each day while still being able to be responsive if a customer needs emergency delivery.
- We help you control your propane costs. One of the advantages of being in business this long is that we understand that our customers need a variety of pricing and payment options. With our EZ Pay Advantage budget plan, you don’t have to deal with big propane bills in the winter. Your costs are spread out over 12 easy, even monthly payments. Price Cap allows you to set a price per gallon for your propane ahead of heating season, when prices are usually at their best. You’ll never pay more than that capped price. You can use Prebuy to purchase a set amount of propane before heating season to take advantage of those prices.
If you ever find yourself struggling to pay your Kimlin Energy bill for whatever reason, we’re here to help. Get in touch with us quickly so we can help you come up with a solution. New York also has low-income energy assistance (LIHEAP) programs. Don’t let fear or pride stop you from making sure you and your family are warm, safe and comfortable.