Propane prices continued to fall this week, and were down eight cents compared to last month’s price. Iowa Department of Agriculture energy analyst, Harold Hommes, says the cost for a gallon of propane continues to be below one dollar at 93 cents.
“Quite a dramatic difference from a year-and-a-half ago — if you remember January and February of ’14 — we were up to four-and-a-half, five dollars for a lot of product,” Hommes. He says the companies that sell propane have too much on hand. “There’s actually some pretty significant supply problems, as a nation we are at record levels of propane production right now,” Hommes explains.
He says inventory levels in the midwest and across the nation are at record levels. Hommes says Canada has major issues with propane supplies. “Especially up in Alberta, the Edmonton area, where production is so steep they are pricing propane at pretty much no value. If you have a truck and are willing to get it out of there, it essentially has no value,” Hommes says. He says now is the time for Iowans who heat with propane to fill their tanks.
For those who buy propane tanks for grilling, Hommes says those prefilled tank prices are not impacted much by the drop in price.
