In the Know: Answers to questions about propane supply, pricing

August 9, 2018 By    

Q:How should propane retailers respond to customers who ask about the state of propane supply and pricing today?

A: Propane is clean, abundant, secure and a lot cheaper than electricity. Here are some key points to keep in mind when telling customers about the state of propane supply and pricing:

    • The U.S. is now the largest producer of propane in the world.
    • Every year there are more propane distribution terminals built around the U.S. to make it easier to distribute all of the new propane production to homeowners.
    • The U.S. is now the largest exporter of propane in the world. It exports as much propane as it uses.
    • If U.S. propane demand increases, we simply export less propane to take care of homeowners’ demands.
    • The average U.S. price of electricity is equivalent to $2.75 per gallon of propane.
    • A propane user can save up to $1 per gallon versus electricity to heat buildings and water, dry clothes and cook food.
    • From production to use, propane is 87 percent efficient – electricity is only 32 efficient.
    • There are ways to avoid a huge increase in your propane price. You can control what you pay for propane by signing up for pricing programs that fix, cap and budget your price from one to five years.
    • There is a huge network of over 3,000 propane distribution companies throughout the U.S. to serve homeowners’ propane needs.

Marty Lerum is managing partner of Propane Resources.

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