Rural farmers depend upon propane gas to power their agricultural tools. It is always a boost for consumers when there is a decrease in prices for this commodity. Propane gas prices fluctuate for reasons that include agricultural industry demands and extreme weather conditions. When these two variables are stable, prices will generally fall below market pricing. Rural residents also largely depend upon propane energy power to supply their heating needs, and pricing stability does influence how their costs will play out. Predictions for 2015 propane gas costs are looking favorable for consumers.
Studying and Benefiting from Propane Price Changes
Keep an eye out for trends in propane price changes and benefit from lower prices when they become available, genXfinancee.com advises. The website urges you to take advantage of purchasing propane when prices are lowered by refilling your tanks. It also recommends that you ask your supplier to keep you informed about price changes and whether the pricing can be locked in for a certain period of time.
Propane Industry Overhead Charges and Insurance Coverage
Propane dealers have many overhead charges imposed on their businesses, and those charges are passed on to you the consumer. The volatility of propane gas as a product requires dealers to carry very high insurance coverage. Dealers first have to meet a slew of government rules before they can obtain insurance coverage for their businesses. Those out of pocket expenses have a bearing on the prices you pay for this commodity.
Crude oil is an ingredient of propane gas. Crude oil influences propane prices when its prices increase. EIA.gov predicts that lower crude oil prices for the forthcoming 2015 winter season will be lower than prices experienced during the winter in 2014. This prediction, if it materializes, means that you will be paying substantially lower propane prices for heating your homes and for business usage this winter.
EIA's positive predictions for lower propane prices that will benefit you are based on National Oceanic and Atmospheric Administration's (NOAA) forecasts, according to Agweb.com. The website notes that NOAA forecasts point to anticipated near-normal temperatures throughout the United States. NOAA predicts that temperatures will be 10 percent warmer this winter than they were in the winter of 2014.
Supply and Demand Influences Price
Supply and demand for propane gas drives industry pricing. Agweb notes that the only major challenge to the industry is the fact that propane is a domestic product, and imported propane is not a hallmark of this country's propane gas industry. If there is a harsh cold weather pattern in the country, then the demand for propane naturally increases and so will the pricing as well. The seasonal prediction for this year is in your favor going into winter 2015, and you should experience savings on your propane gas bills.