Northwest Iowa — We may not be enjoying the recent cold weather, but folks in the area who heat their homes with propane are certainly enjoying being able to stay warm without busting their budget. We’re past the half-way point of winter and propane prices are holding steady, a big relief to area residents who heat their homes with the fuel, especially after a record-setting price spike two years ago.
Harold Hommes, a fuels analyst with the Iowa Department of Agriculture, says there’s a huge surplus of propane right now, setting up an unusual situation.
Two winters ago, a propane shortage pushed propane prices to five-dollars a gallon. Hommes says unless there’s a prolonged cold spell, prices likely won’t budge, since spring will be here soon and demand will drop.
Given the laws of supply and demand, the nation’s supply of propane is plentiful which is keeping prices very low and steady.
While we’re just above a dollar a gallon now, liquid propane was retailing at $1.60 a gallon a year ago. In January of 2014, Iowa hit record high prices for L-P at just over $5 a gallon. About 183,000 Iowans heat their homes with L-P.