This isn’t just a propane story, but a trend being felt by all energies. For instance, North American natural gas prices are also on the rise amid supply shortages.
The primary drivers affecting propane’s rising prices in 2021 are increasing demand and strong exports. Loosening of COVID restrictions and increasing economic activity are helping to drive global demand. Further, Europe and Asia are procuring energy at all costs to mitigate further threats of energy shortages. Meanwhile, energy production hasn’t caught up with this demand. Let’s also keep in mind that colder winter months typically create higher demand and therefore higher costs.
ANSWERS TO YOUR PROPANE PRICE QUESTIONS
When will propane prices go down?
Propane prices are expected to come down when supply and demand dynamics normalize across the energy sector.
Will Superior have enough supply to serve customers this winter 2021?
Yes, we have contingency plans in place, including purchasing and storing increased inventory so that we are equipped to minimize service interruptions. We have the capacity to store high volumes of propane so that we have more product on hand to be able to get through unforeseen critical events.
When is the best time to buy propane?
Keep your eye on energy prices and projections, and consider locking into Superior’s Fixed Price Plan when we begin to see a downward trend in the market. Our budget plans also allow you to spread your cost evenly over 12 months.
FIXED PRICE EXPLAINED
The fixed price for propane is based on a 12-month outlook, which considers economic conditions, supply, demand, and propane inventory levels in U.S. and Canada to help predict average monthly propane prices for the next 12 months.
Similar to a fixed mortgage, a fixed price plan protects you from unpredictable price swings for one year. You can fix it and forget it. Otherwise, your price for propane is determined in part by fluctuating market prices, similar to a variable rate mortgage.
PRICE SHOPPING FOR PROPANE
Some companies are prepared to sell at lower prices, sometimes below market, to obtain new business. To make sure you’re comparing the right rates, find out if the rate quoted is introductory, seasonal, floating or fixed.
Also, not all companies offer the same level of emergency services, safety programs, and contingency supply plans during service disruptions.
- We can reliably deliver propane in good times and bad because of our strong supply chain and ability to mobilize quickly to respond to changing demand.
- During the rail strike of 2019, we were still making deliveries while other companies had run out of propane.
- Whether it’s unforeseen weather or critical disruptions to transportation, our tank sensor technology allows us to remotely monitor tank levels and prioritize critical deliveries.
- Customers can also monitor their fuel levels through mySUPERIORTM online or our mobile app.