What is the Per-Gallon Price of Propane?
Written on: December 12, 2022
Breaking down why propane costs what it does
We are getting a lot of calls about energy prices these days. Winter weather has already arrived in Delaware, from Kenton to Milton. Current customers and people considering switching to propane want to know how spiking energy markets are affecting propane.
While energy prices have been volatile throughout 2022, propane prices have risen less than many other fuels. As a domestically-made fuel, propane is more stable in the market. Delaware Propane has been a company of choice for propane delivery, and one crucial reason is that we are fair and transparent in our pricing.
How much does propane cost per gallon?
Propane prices can rise and fall like all energy prices. In 2022, residential propane in Delaware has been between $3 and $4 per gallon. Propane is a coproduct of oil refining and natural gas production, and its price tracks those fuels somewhat.
What factors affect the price of propane?
There are a few variables that can make the per-gallon price of propane rise and fall:
- Residential demand. When temperatures drop, more people need to fill their propane tanks.
- Transportation. The largest propane storage in the U.S. is in Kansas and Texas, but some of the highest demand is here on the East Coast. Transporting the fuel over icy roads bumps up the cost.
- Agriculture. Propane is used to dry crops. Farm demand for propane rises when there’s been a rainy growing season.
- Petrochemical manufacturers. Petrochemicals go into products like adhesives and detergents. Propane is a feedstock for petrochemicals, and these manufacturers are massive fuel consumers.
- Global demand. The U.S. exports more propane than we use. There’s reason to expect that more U.S.-made propane will go to Europe as Russian energy markets are cut off.
How does propane compare to electricity and natural gas?
It can be challenging to compare the price of propane, which is measured in gallons, to electricity (measured in kilowatt-hours/kWh) or natural gas (cubic feet). Still, here are two items that can help you compare rates in your area:
- The energy produced by 1 gallon of propane equals about 27 kWh of electricity.
- 1,000 cubic feet of natural gas produces about the same energy as 11.2 gallons of propane.
It’s important to note that propane is more energy efficient than natural gas and electricity, especially when it comes to heating. Propane produces double the heating energy per cubic foot as natural gas. Propane furnaces heat air to 140 degrees, while electric heat pumps struggle to keep homes comfortable in the coldest winter months.
Delaware Propane can help with your propane budgeting
A Delaware Propane, we are proud to have a dependable, friendly delivery team. We offer a free Keep-Full automatic delivery program. You never need to check your tank gauge or contact us for fuel — we handle that for you and ensure you never run out!
And while we can’t do much to change global energy markets, we can help you avoid huge fuel bills. With our Budget Plan, you won’t get hit with several big bills in the winter. Instead, we spread your expenses over 11 stable monthly payments.
If you’re interested in enrolling in a Budget Plan, you can learn more here.