June 1, 2020
Many families and businesses alike are looking to maintain cashflow and budget for expenses throughout the year. Whether it’s part of your regular spending review or to be prepared for the uncertain times, it’s prudent to take some time to evaluate your propane pricing options.
Propane Demand and Impact on Propane Prices
Propane pricing changes throughout the year due to a number of factors including supply and demand. During the COVID-19 pandemic, we witnessed an unprecedented and abundant supply of oil due to significantly lower demand as people drove their vehicles less and travelled less. We didn’t see quite the same impact on propane, since demand continued to be relatively strong. This is because propane is a versatile fuel that is used in so many applications. Aside from building and appliance heat, propane is also used for various essential activities, such as food processing, manufacturing, auto propane for vehicle fleets, and forklifts. Steady propane demand and supply resulted in fairly consistent commodity pricing.
What we know is that weather can have an impact on propane pricing. The colder the temperatures, the higher the demand and therefore, could result in a higher propane commodity price. Peak demand season occurs in the fall and winter due to heating fuel end-use and crop drying. A good time to review propane pricing is typically during the summer months when consumption and demand are lower.
Knowing that colder weather can create higher demand, there are ways to make energy expenses more predictable and affordable in order to manage your budget.
Before temperatures begin to drop, lock in your price per litre (PPL) for a full year with a Fixed Price Plan (FPP) for peace of mind in knowing that if propane prices rise, you don’t have to worry. Your price per litre will be the same each time you get a delivery for the duration of your lock-in period, and your price is secure no matter how severe the winter.
The Fixed Price Plan gives customers stability and predictability in order to effectively budget for year-round costs for heating and powering appliances. You can enroll for FPP at any time throughout the year, but a good time to evaluate pricing is during the summer months when propane consumption is typically lower.
For even more control over your energy budget, combine a Fixed Price Plan with an Equal Payment Plan (EPP). Your payments will be spread out evenly over 12 months and adjusted twice a year based on your consumption. Having a pre-determined monthly cost at a fixed price over 12 months allows you to budget for your propane heat and power expenses all year long.
Monitor Propane Usage and View Historic Consumption
At any time, you can log into your mySUPERIOR™ account—on your mobile device or computer—to monitor your consumption and view delivery and payment history. Having this information at your fingertips can also help with forecasting and budgeting. Plus, you can even make payments and begin the FPP or EPP enrollment process through mySUPERIOR™. Learn more at mySUPERIOR.ca or download the app today.