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Prepare for Propane Sticker Shock
Propane prices haven’t been so high heading into winter in a decade, which is bad news for the millions of rural Americans who rely on the fuel to stay warm
Link to tweet
Prepare for Propane Sticker Shock
Exports have drained domestic supply ahead of heating season and prices have surged
By Ryan Dezember
https://twitter.com/RyanDezember
ryan.dezember@wsj.com
Oct. 25, 2021 5:30 am ET
Propane prices haven’t been so high heading into winter in a decade, which is bad news for the millions of rural Americans who rely on the fuel to stay warm.
At $1.41 a gallon at the Mont Belvieu trading hub in Texas, on-the-spot prices are about triple those of the past two Octobers. Of the two main U.S. propane futures contracts, one hit a high earlier this month and the other doesn’t have far to climb to eclipse the record it set during the blizzard of 2014. The average residential price tracked by the U.S. Energy Information Administration has jumped by 50% from a year ago, to $2.69 a gallon.
All manner of heating fuels are heading into winter at their highest prices in years and could climb more if the weather is cold. But propane is expected to take the biggest bite out of household budgets.
Most U.S. households and businesses are heated with natural gas or electricity, highly regulated markets in which consumers are insulated from price swings in the commodities and usually given time to catch up on payments before they go cold.
{snip}
Exports have drained domestic supply ahead of heating season and prices have surged
By Ryan Dezember
https://twitter.com/RyanDezember
ryan.dezember@wsj.com
Oct. 25, 2021 5:30 am ET
Propane prices haven’t been so high heading into winter in a decade, which is bad news for the millions of rural Americans who rely on the fuel to stay warm.
At $1.41 a gallon at the Mont Belvieu trading hub in Texas, on-the-spot prices are about triple those of the past two Octobers. Of the two main U.S. propane futures contracts, one hit a high earlier this month and the other doesn’t have far to climb to eclipse the record it set during the blizzard of 2014. The average residential price tracked by the U.S. Energy Information Administration has jumped by 50% from a year ago, to $2.69 a gallon.
All manner of heating fuels are heading into winter at their highest prices in years and could climb more if the weather is cold. But propane is expected to take the biggest bite out of household budgets.
Most U.S. households and businesses are heated with natural gas or electricity, highly regulated markets in which consumers are insulated from price swings in the commodities and usually given time to catch up on payments before they go cold.
{snip}