During the heat of summer and the height of growing season, your propane supply might be the last thing on your mind. However, recent market indicators show propane supplies are below average, which could limit availability during high-demand periods, such as harvest. Now’s the time to assess your upcoming fuel needs.
Current 2017 propane inventories are below the Five-year average.
After winter, propane suppliers are generally able to rebuild their inventories throughout the spring and summer. However, 2017 saw an increased export demand. Because of this, propane inventories have not been restored at their typical rate. The current supply is running low based on predicted needs for the fall and winter months. As inventories lag later in the year, market experts predict the price of propane could see an increase.
However, there is plenty you can do now to prepare for the fall and help mitigate the effect of any further market shortages:
What to do if you’re a homeowner
If you’re a rural homeowner or otherwise rely on propane to heat your home in the winter, now is a great time to fill up your home’s propane tank. A summer fill ensures you’ll have what you need when cold weather and higher demand come, no matter how the markets shift.
What to do if you’re a producer
Propane supply for an operation is a little more complicated than for a residential home. Typically, farmers assess their propane needs later in the season based on their predicted crop yield and drying capacity. But with propane inventories where they are, we suggest farmers do the math and purchase their fuel earlier than usual, in case supplies become strained or prices increase during harvest.
A summer fill is a great course of action, but be sure to work with your propane dealer to discuss what you’ll need for the rest of the season. This helps dealers work directly with their suppliers to maintain consistency for the rest of the year.
Lower-than-expected propane inventory just means more careful planning is in order. Now is the time to take control of your future to ensure your home or operation has the fuel it needs to get through the rest of the year. Contact your local Cenex® dealer for more supply planning information that best suits your needs today.