First-time residential propane users are often surprised at the size of their propane bill during winter: it can be much larger than at other times of the year. There are two main explanations for this.
Propane usage risesas temperatures decrease
If you use propane for indoor space heating, it is likely that your larger propane bill is due to a higher propane usage. Indeed, we use heaters more in winter, and heaters use a fair bit of energy, so if temperatures are unusually low you may have increased home heating levels more than usual to compensate for the cold. In this case, there is nothing odd about a higher propane bill since it is simply more gallons of propane used at a certain price.
Propane prices increase as temperatures decrease
Propane is affected by the relationship between supply and demand, which means that the more people request propane, the higher the residential propane price will be. As a result, since people use more propane in winter if they heat their homes with it, demand will increase and prices will rise. It makes it particularly interesting to opt for a fixed price or pre-buy propane supply agreement where you purchase a certain amount of propane at a lower price that can last throughout the winter months.
Controlling your energy bill in winter
Whether your propane consumption increases or the price of propane per gallon rises with demand in winter, it is in your interest to control your energy bill when you use the most energy. You have two options:
- First, simple energy-saving tips, such as lowering the water-heater temperature to 120°F rather than the 140°F standard temperature or ensuring you are using space heaters rationally, will significantly decrease your monthly energy consumption and, therefore, your bill.
- Second, when moving into a new home or during the summer months (when demand for propane is relatively low) you could look at the different service and pricing options offered by the reliable propane companies near you to find the deal that best suits your financial needs.