Wednesday, September 2, 2009

Why is Propane so Expensive?

We actually get this question a lot from angry consumers that think they are paying to much for propane. According to the Energy Information Administration propane price is mostly tied to crude oil because it is a by product of heating oil being refined and it competes directly with heating oil. Here are a couple of charts that show the relationship. All of this can also be found on the EIA website.

1 comment:

Anonymous said...

At one point last winter the price of heating oil was more expensive than the price of gasoline.. INCLUDING THE HIGHWAY TAX! That's like around .42 a gallon(?) Gasoline is tied to heating oil as much as propane is so why are propane and heating oil so much more expensive than gasoline?