Will Propane Prices Go Down?
If you use propane to fuel your rural home, you’re probably spending time checking fluctuating prices throughout the year. The rise in prices we’ve experienced makes it more expensive to maintain a comfortable lifestyle, but we’re here to offer you reliable tips on how to navigate propane cost increases. Discover the factors influencing propane prices, and ways to avoid pricing uncertainty.
Why is propane so expensive in Canada?
Recent seasonal changes have resulted in significant increases in the cost of heating homes during the winter. This year is trending in a similar direction, showing pricing increases will be very likely throughout the season.
While propane prices remain higher than in previous years, data shows that 2023 prices haven’t turned out to be quite as big of an increase as was expected. Many factors lead to fluctuations and determination of the pricing formula, including:
Seasonal Demand
Demand for propane has increased due to more people staying at home, and lower inventories due to harsh weather conditions.
Supply Chain
Shortages of transportation due to limited long-haul truck drivers, and import costs increasing due to a strengthening US dollar, all contribute to higher propane prices.
Does world conflict cause higher energy prices?
Global events have a direct impact on energy costs. Though Canada is not a major player in Russia’s oil market, it is not immune to the effects of Russia’s war with Ukraine. Global oil and energy costs have felt a lot of pressure, and with the US dollar strengthening as a result of the conflict, Canada is seeing rising import costs, which get passed down to consumers.
Are oil prices comparable to propane prices?
Due to the rising costs of crude oil imports, other forms of home heating have also seen increases. Natural gas customers have also been feeling the pressure of inflation each month. As the gap in price between oil and propane shrinks, it has made choosing between natural gas and propane even more difficult for homeowners.
For rural homes, switching to natural gas might not be an option due to a lack of infrastructure, and the costs involved in switching. Propane is often a safer and more efficient option for powering your home.
How can you reduce your spending on home heating?
There are several strategies you can use to keep your propane bills in check. Here’s what we recommend:
Opt for Price Protection: Use price protection plans, or lock in your seasonal price, to regulate your propane bills and avoid unexpected costs when it’s time for a refill.
Adjust Your Thermostat: A small adjustment can lead to significant savings over time. Lower the thermostat when you’re not at home or during the night.
Insulate Your Home: Make sure doors and windows are well-insulated to keep the heat in and cold out. This way, you’ll use less propane to maintain a comfortable temperature.
Evaluate Your Tank Size: Take note of how long your current tank lasts. If it runs out too frequently for comfort, check with your propane provider about getting a larger tank to reduce the need for refills.
Increasing propane prices are caused by a variety of factors, but with careful planning, we can all play our part to minimize the effects. Primemax Energy is happy to offer our customers the opportunity to lock in their price for up to 24 months! Avoid pricing uncertainty with our 9, 12 or 24-month fixed pricing offer. Contact us today for more details.