Buy Propane while it’s Cheap

While many Iowans have their air conditioners running during the heat of early August, one expert suggests they look ahead to wintertime and their home heating needs.

propane

Harold Hommes, a fuels analyst with the Iowa Department of Agriculture, says a very rapid rise in liquid propane prices last winter left many Iowans stunned and facing tough financial decisions…

“We’re encouraging people to be prepared. Last year was truly an unusual situation that caught a lot of people off guard. We had prices bumping up in that $4 and $5 level and we certainly don’t want to see a repeat of that.”

It’s a lesson learned in Economics 101 about supply and demand and Hommes right now, the supply is very good, so prices are low…
“Propane prices are ranging from about $1.40 on up to the $1.70 range,” Hommes says. “Those are good summertime fill opportunities. Get that tank full going into winter and minimize obligations for what they’ll be facing for propane costs this winter.”

Prices peaked in January above five-dollars a gallon. About 90-percent of the Midwest’s inventory of propane is stored in underground caverns near Conway, Kansas.

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