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 15 percent or roughly 183,000 Iowans who heat their homes with LP.
“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 $5.00 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.
“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 LP inventories are up and foreign investors are not finding it as attractive as it’s been in the past.