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Who Determines the Cost of Propane?

Written on: September 11, 2023

Get fair, transparent propane pricing with AFC

propane prices Augusta, me At AFC, we are dedicated to providing you with competitive and transparent propane pricing. We understand that managing your propane costs is important, which is why we offer a range of propane pricing and payment options that give you the freedom to choose what works best for your needs.

We also believe in keeping our customers informed, so we’ll show you what factors into the price you pay for propane.

How propane’s price per gallon is determined

The price of propane per gallon is influenced by more than just supply and demand. Factors such as weather conditions and international affairs also play a significant role. Now, let’s delve deeper into these aspects for a better understanding.

Crude oil and natural gas prices: Approximately 70% of propane in the U.S. is derived as a byproduct of natural gas processing, making it highly susceptible to any fluctuations in natural gas production. The remaining 30% of our propane supply is sourced from crude oil processing, which means that global oil markets can also influence the price per gallon of propane.

Weather conditions: Propane plays a crucial role in both residential and commercial heating across the country. As a result, the pricing of propane can be influenced by weather conditions, both locally and in distant areas. However, it’s important to note that the impact on propane costs extends beyond just winter weather. Let’s consider an example: Even a summer hurricane near a propane distribution center can have far-reaching consequences on propane distribution and pricing for weeks, if not months, afterwards.

Location: Living near a propane storage and distribution hub can result in lower propane costs, whereas residing farther away may lead to higher expenses for your propane supply.

How you can cut your propane costs

There are several methods to decrease your propane consumption and lower your propane expenses.

Utilizing a programmable or smart thermostat effectively can lead to significant savings of 10% or more on your propane home heating expenses. To help you make the most of these energy-saving devices, here are some recommendations from the U.S. Department of Energy regarding programmable and smart thermostats.

  • When you’re at home and awake, set the thermostat for 68°F.
  • Lower temperatures by 10° for the hours you’re asleep or out of the house.

Water heating is the second-largest consumer of propane in your home, right after home heating. Here’s an interesting fact: by simply adjusting your water heater’s thermostat from 140°F to 120°F, you can save up to 10% on energy costs. And don’t worry, your water will still be plenty hot for all your bathing and cleaning needs! Not only that, but this simple adjustment also helps reduce the risk of scalding injuries, for which children and the elderly are especially vulnerable. So, make the smart choice and start saving while maintaining a comfortable and safe water temperature.

How AFC can help you manage your propane costs

The fluctuation of propane prices can make it more challenging to manage your household expenses. AFC understands that, so we provide several propane pricing and payment options to help with that.

EasyPay: You’re off the propane bill roller coaster when you enroll in EasyPay! That’s because your propane costs are spread out over 12 easy, even monthly installments. You can better plan your household spending and you get a discount of 5 cents per gallon!

EasyCap: Set yourself free from worry about propane price spikes. When you enroll during the summer, your maximum per-gallon for propane is set and you never pay more than that. However, if prices fall below that capped price, you’ll pay that lower price.

PreBuy: Did you know that propane prices tend to be lower in the summer than in the winter? With PreBuy, you purchase your winter’s propane supply in the summer, taking advantage of summer pricing. You also don’t have to worry about what happens to propane prices during the winter.

Become an AFC customer for dependable propane delivery and great propane pricing!