Written on: October 24, 2022
If you have propane in your home, you know that is an efficient, versatile energy source.
However, with the news about fuel costs lately, you may be worried about your propane costs. Johnny Prescott is here for you. Our propane pricing is competitive, our pricing and payment options let you manage your propane costs your way, and we’re here to show you how the price you pay for propane is determined.
You may think it’s simply supply and demand. That matters, but it’s not the only factor that determines how much you pay for each gallon of propane. Weather, global markets, and more have an impact. Let’s examine some of these factors.
Crude oil and natural gas prices. Propane is a byproduct of processing for natural gas and crude oil. Since natural gas processing generates about 70% of the U.S. propane supply, that has the greatest impact.
Weather. Since propane is used for residential and commercial heating throughout much of the country, weather can affect the price of propane. By the way, this winter is forecast to be colder and snowier than normal here in New Hampshire. However, because propane is used in a wide range of appliances year-round, more than winter weather can impact propane costs. A hurricane can disrupt propane distribution, for example.
Location. If you live close to a propane storage and distribution hub, the less you’ll pay for propane.
There are ways you can keep your propane costs down by reducing how much propane you use.
If you use propane for home heating, a programmable or smart thermostat used properly can cut your heating costs by 10% or more. Here’s what the U.S. Department of Energy recommends you do when programming your thermostat.
After home heating, water heating is the second-largest user of propane in your home. You can reduce your water heating energy costs by 10% by turning down the thermostat on the water heater from the manufacturer’s setting of 140°F to 120°F. Your water will still be plenty hot for bathing and cleaning, and you will also be reducing the risk of scalding injuries.
Johnny Prescott gives our customers ways they can manage their propane costs to best suit their needs and their budgets.
You can choose Pre-Buy, where you purchase your propane ahead of the heating season and aren’t affected by any price spikes. Price Cap allows you to set an agreed-upon cap on how much you will pay per gallon for your propane. No matter what happens in the markets, your price per gallon will never go above the capped price. But if prices fall, so does your price per gallon!
Our Budget Plan gives you the option of spreading out your propane costs over 11 easy, affordable monthly installments so you are not stuck with big bills in the winter.
Get the most reliable propane delivery in New Hampshire. Become a Johnny Prescott customer to make having propane worry-free!