Low Propane Prices Spell Good News For Users
Date posted - July 9, 2015
Des Moines, Iowa — There’s good consumer news for Iowans who use propane — from backyard grillers to farmers and homeowners. Propane prices are at an all-time low, according to Harold Hommes, an energy analyst at the Iowa Department of Agriculture. Hommes says those who grill probably won’t notice a difference, but he says the impact will be significant for the thousands of Iowans who heat their homes with propane.
(As above) “People are just now taking advantage of summer fills and buying opportunities where they try to lock in their needs for the winter,” Hommes says. “I think they’re going to be fairly happy with the results and where they can lock in those values.”
Just how good are those values? In the winter of 2013, propane prices hit a record five-dollars per gallon due to increased exports and high demand from farmers needing it to dry grain. This summer, Hommes says many suppliers are offering the gas significantly cheaper.
(As above) “Depending on different locations in the state, anywhere from 70 to 95 cents and the dollar mark,” Hommes says, “but certainly a very favorable value compared to where we were at just a couple years ago.”
Just like gasoline, Hommes says propane inventories are up and foreign investors are not finding it as attractive as it’s been in the past.
Incidentally, Hommes is a northwest Iowa native, who grew up in Rock Rapids.
Speaking of Rock Rapids, officials with the NuStar petroleum pipeline terminal there say they are installing propane tanks and will begin storing propane for delivery to large tanker trucks. Other improvements include upgrading of the terminal buildings and painting of the massive petroleum tanks west of Rock Rapids.