Propane Pricing: Multiple Factors

Written on: May 9, 2022

Kimlin Energy can help you control your propane costs

ropane pricesHow much you pay for your propane can be affected by several factors, sometimes more than one.

That’s because propane is refined from commodities traded on the global markets: natural gas and crude oil. If those commodities are impacted, you’ll feel it in future propane bills.

Here are some key factors that affect how much you’ll pay for your propane.

Current events. All sorts of things going on in the world can impact your propane costs. Ransomware attacks, natural disasters, and geopolitical conflicts can all affect how much you pay for propane. Russia’s invasion of Ukraine, and the international sanctions that have been placed in response have wreaked havoc on the energy markets, as you have seen when you fill your car’s gas tank.

Weather. Winter storms, extreme cold, and tropical storms and hurricanes can impact propane production and transport, causing a price spike.

Supply and demand. Commodity costs are greatly affected by demand. For example, residential propane demand is higher in the winter because of home heating needs, so the price of propane may be higher to reflect that demand. Production and supply levels can also fluctuate over the year. By the way, now is a great time to fill your propane tank as the demand of the winter heating season has ended.

How to control your propane costs

Kimlin Energy offers several pricing and payment options you can choose from to help you manage your propane costs in a fashion that best suits your needs and budget.

Our EZ Pay Advantage plan brings stability to your propane costs. Instead of paying three or four big propane bills in the winter, your costs are spread out over 12 easy, affordable monthly payments. It makes planning your household spending easier.

You can also control how much you pay for your propane with Price Cap and Prebuy. When you enroll in our Price Cap plan, you agree to pay a set price for your propane in the coming heating season. You’ll never pay more than that price no matter what happens in the markets.

Prebuy allows you to purchase your propane ahead of heating season. You’ll have peace of mind about your propane supply and costs.

In both cases, you’ll be setting your propane price in the summer, when pricing tends to be lower. You’ll be protected from any price spikes that follow!

Are you having a hard time paying your Kimlin Energy bill? Don’t wait until you fall behind. Contact us now and we’ll work with you on a solution.