It’s always hard to predict which direction propane and oil prices will go next, because so many factors contribute to the rise and fall of energy prices, including unforeseen events like severe weather and global politics, both of which affect energy production.
Incidents can include destructive hurricanes temporarily shutting down major refineries or an international crisis that may have an effect on crude oil production. Although events like these may not lead to any actual shortages, fuel prices around the country—including gasoline, diesel fuel, propane and heating oil—can all rise because of speculation in the stock market about what could happen in the coming weeks and months. This is often referred to as “the fear factor.”
In addition, we have seen propane prices rise over the last few years for a solid reason: Record amounts of propane are being exported, and that has largely crimped inventories back home.
On a local level, seasonal demand, operational costs (including overtime) and even competition between dealers can result in price fluctuation.
Most of this is beyond our control, but as a Smith Propane and Oil customer you can always count on a fair rate and responsive service from us.