If at all possible, propane price experts will advise you to fill your propane tank in summer. Indeed, summer is when the propane price is cheapest, generally. This is especially the case for those of us who use propane for many appliances and whose homes run mainly on propane (for example, those of us who rely on propane for central heating and water heating). But it is also true for those of us who only use propane for a single appliance (for example, outdoor grills).
What is the summer propane price?
The summer propane price is difficult to determine because the propane market is unregulated and propane companies are free to set their own. Summer propane prices vary a lot depending on what you use propane for (appliances) - people using a lot of propane will pay a lower price per gallon than people who use propane for fewer appliances.
Why is the propane price lower in summer?
One of the factors influencing propane prices is supply and demand. The more people want propane, the higher the propane price. In summer, since nobody really heats their homes very much, the propane price tends to drop considerably. Conversely, in winter many people need propane for central heating, for example, and prices tend to rise.
How big a difference is there between summer and winter propane prices?
The pricing difference between summer and winter is considerable. Often, prices vary by a dollar per gallon or more. For a 500-gallon propane tank, this implies a bill that is $500 dollars cheaper in summer than in winter. The advantage of this setup is that people who have a big enough propane tank, or several propane tanks, can profit from lower summer propane prices to purchase the amount of propane they will need over some or all of the winter months..
Do lower prices in summer imply that you should sign a contract during the summer months?
Yes, it does. Whether you are moving into a new home with propane or want to switch propane companies, you should ask around to see what the different summer propane prices are. It is even more interesting to enter into a fixed price or pre-buy plan with propane companies in summer.