Propane supplies remain high & prices are staying low, for now.
Iowans who rely on propane to heat their homes don’t want a repeat of last winter when prices hit record highs. Mason Hamilton, an analyst with the U-S Energy Information Administration, says propane costs, like any other commodity, are based on supply and demand. Hamilton says there was a huge demand for the fuel in Iowa last fall.
When the cold weather moved in and propane supplies dwindled, the prices rocketed from around a dollar-and-a-half a gallon to over five-dollars. For now, Hamilton says supplies are looking good for the Midwest.
In recent weeks, propane prices have been ranging from about $1.40 on up to the $1.70 range. About 90-percent of the Midwest’s inventory of propane is stored in underground caverns near Conway, Kansas. Around 15-percent of Iowa homes are heated with propane, mainly in rural areas.
