As Midwesterners prepare their homes for the icier months, for many, that means ensuring their propane tank is ready for cold weather too. This winter, however, the price of propane might look different for homeowners. But rest assured, working with your local propane retailer can help you get the best prices possible so you can be the most prepared.
The demand for propane
Let’s rewind and look at the history of propane — specifically, its demand. Historically, propane has been favorably cheap, especially when it comes to residential usage. Much of the propane that was produced domestically stayed here in the U.S.
However, the market for propane has become more globalized, meaning the demand for domestic gallons is no longer just in the U.S. The propane being produced here is now being marketed around the world, and the competition for it has increased. And as demand increases, so does the price.
Winter demand season
Every winter in the U.S., propane demand picks up in the fall as harvest is in full swing and residential homes start using their heat. But this winter, they may be faced with higher home heating needs.
According to the National Oceanic and Atmospheric Administration, the Midwest is expecting a colder-than-average winter compared to temperatures over the last 10 years.
With more propane demand coming from home heating coupled with the globalized propane market, the U.S. Energy Information Administration expects that “households across the United States will spend more on energy this winter compared with the past several winters.”
Your local propane retailer is backed by a strong supply network
Increased demand from globalization and the potential for increase in domestic residential usage are aspects of the supply chain that affect propane pricing. One way to manage your propane price risk is to work with your local propane supply retailer.
A large benefit of working with your local propane supply retailer is that the propane is sourced through the supported CHS supply chain. This means your local Cenex propane retailer purchases wholesale propane directly from CHS, one of the largest national supply networks which can meet the needs of retail marketers throughout the country.
Additionally, your local propane retailer will work to understand your delivery needs and provide innovative price programs that work well with your budget and consider the potential price volatility this winter. Your local team will bring innovative, safe and reliable propane that will keep you and your family warm all winter.
Reach out to your local propane retailer now to prepare for the winter ahead.