It’s a mystery why propane prices are still so high
October 20, 2008
Propane, like other petroleum products, was hitting the roof last spring with stratospheric prices.
In fact, last July, propane, trading on the New York Mercantile Exchange, hit $2 a gallon, with some local prices apparently going over $3 a gallon. However, at least on the Merc, propane has been on a freefall.
The average price in September was $1.56 a gallon, and the average price so far this month (October) has been $1.14. And today, November deliveries are selling for 84 cents a gallon and December deliveries at 85 cents.
Why is it that propane prices in western Nevada county are still ranging from $2.35 to almost $3?
Owning my own tank, I am free to shop, to choose how much and where to buy, and I gather that the prices at the next step up in the distribution chain are not falling as one might expect.
I am very sorry for the poor sods who accepted cheap leases on tanks from the tank rental companies, who are now getting topped off at sky-high rates before the local prices drop. I’m buying as little as possible until our prices settle down.
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