2003silverado wrote:
I'm paying 1.39/gallon for propane for home heating. Add the road tax to that and it would be close to the price of gas at the current time. When gas goes back up to 4/gallon it would make more since.
Propane goes up and down just like gasoline and diesel with supply and demand. The ONLY time I have seen propane cheaper than gasoline was when gasoline shot up over $5 per gallon and even then Propane shot up to nearly the same as gasoline if you account for ROAD TAXES.
Why?
Simple, Propane is DELIVERED via TRUCKS that USE DIESEL FUEL, cost of diesel goes up and the propane supplier must ALSO raise the cost of propane in order to not go bankrupt..
Propane prices also tend to SPIKE during winter time in areas not served by Natural gas..
Propane is also a "by product" of oil and natural gas production which many years ago was a waste by product.. So the cost of gas and oil production also affects the price of propane..
