TULSA, Okla. — The cost of propane is starting to go down after seeing an increase this summer.
Propane prices are higher now than they were this time last year after there were concerns over low production earlier in the year.
Jon Miller, a partner with Tulsa-based propane supplier Flashpoint Energy Partners said, nationwide, there was about a 20 percent drop in inventory.
“So, earlier this year, back in the spring propane inventories were definitely not building at a historic rate," Miller said. "And there were some concerns over a shortage if once we got to winter, we actually had a winter.”
That concern and low inventory led to a rise in the cost of propane. Steve Stobaugh, president of Tulsa Gas and Gear, said it increased more than $1 per gallon this summer.
“It did climb up quite a bit higher than it was over the same period last year and in the early fall, but it has since come down a little bit," Stobaugh said.
A warm start to colder months and low demand is bringing the price down and keeping the supply steady. Both Miller and Stobaugh aren’t concerned with the propane inventory in Oklahoma.
“As the season has gone along, we’ve started this winter season at a very lower than normal demand-type cycle," Miller said. "Those concerns have really begun to trickle their way out of the marketplace.”
While prices are down now, they tend to increase during the winter months. Stobaugh said it’s never a bad idea to be prepared.
“Be prepared to pay a little bit higher prices than what you did this time last year," Stobaugh said. "Probably be proactive to make sure that you can get your tanks filled if there is to be any continuation of supply chain issues.”
Miller said it would take several weeks of extreme cold for the propane prices to go up significantly again. Right now, he doesn’t expect that to be any time soon.
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