Do You Know Where Your Propane Price Comes From?

Do You Know Where Your Propane Price Comes From?

The Many Factors That Go Into Your Propane Delivery

Your friendly Delta Liquid Energy propane delivery specialist is in your driveway again, bringing that much needed fuel to heat your home. He fills up your tank and hands you your delivery ticket – “Whoa! That was more expensive than I thought it would be?!” We’ve all been there. Propane is a reliable, sustainable, clean energy source for many of us and its benefits far outweigh the sometimes costly expense. But, it’s important to remember that prices of propane aren’t determined out of thin air. There are many factors that go into setting the price per gallon –

What’s the weather like, not only outside your door but around the country?

At what cost is your delivery specialist or service technician one of the most highly trained professionals in the industry?

What regulations are being placed upon the entire propane industry by both local and federal governmental bodies?

Finally, what does the supply chain for propane look like? What does it take to bring this energy source to your front door?

We’ve created the infographic below to answer just this! Where does propane come from, you ask? With thousands of miles traveled from production to your residential or commercial tank, propane’s journey is extensive:

Propane production process from production to end use

On top of a long supply chain from production to consumption, propane prices can also be affected by these circumstances:

Fuel Shortages & Demand Throughout The U.S. – When our nation experiences a winter like the one we’ve just had, propane is in high demand all over the U.S. Higher demand from residential customers drives up the price propane companies pay to suppliers & part of this cost must trickle down to the end user.

Safety and Training – At DLE we pride ourselves on the professional, safe service we provide to you, our customers. In order to properly train our technicians on the intricacies of propane systems, we are always taking advantage of workshops and training seminars. These courses offered to our team help them provide service that will keep your family safe.

Governmental Regulations – Officials in our state’s capitol would like to see California as an all electric state. This is an impossible feat as no one will ever be able to produce enough electricity for this vision. Propane provides clean energy to many customers living in rural areas of our state and we’re fighting to include all energy resources in California’s energy portfolio.

 

Don’t forget that Delta Liquid Energy offers multiple options to alleviate a hit to your wallet. The best option is our Pre-Buy Program – offered every year allowing you to pre purchase your estimated winter use during the spring and summer at a price often lower than the cost of a typical winter delivery.

 

Additional sources:

How is Propane Priced?