How Will Recent Hurricanes Affect Propane Prices in PA & DE

Posted by Chris Kauffman
| September 2017

Short answer: Expect a small rise & quick recovery

We’ve all been tracking the devastating pack of hurricanes hitting southern parts of the US in the past 2 weeks. Certainly, we’re all expecting a spike in crude oil and gas prices, but will that affect propane prices?

The US propane price per gallon rose a few cents after Hurricane Harvey and leading up to Hurricane Irma’s havoc in Florida.

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It doesn’t seem like a lot, but it’s the highest prices have been since last February. Though, any hurricane propane price changes in the next few months will most likely affect the midwest (particularly midwest farmers buying propane) more than the Pennsylvania and Delaware Region.

The price jump probably won’t be too significant in our area

The perception has definitely been that prices will go up. But it’s doubtful that propane prices will rise more than people think, even after all the damage done by this string of hurricanes.

Propane price is more dependent on propane inventory levels & demand

The biggest factor affecting propane prices is simple economics, higher demand versus lower supply of propane will mean higher prices. The US produces more than enough propane to meet domestic demand, despite large sources like Texas being affected by the hurricanes.

Locally, Kauffman Gas still gets most of their propane from the Marcellus Shale, which is a big source propane in the eastern US and US exports as a whole.

Because this large propane source will be unaffected by the storms in the south, customers in Pennsylvania and Delaware probably won’t even see prices rise more than a cent or two. Then the prices will probably drop back down as quickly as they rose.

More than likely, if there’s any price change to watch out for, it will be crude oil and gasoline prices. Though any immediate price spikes seem to be decreasing already.

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Chris Kauffman

About the Author

Chris Kauffman

Chris is the Vice President of Kauffman Gas. He is the fourth generation of Kauffmans involved in the daily operations of Kauffman Gas. He helps lead the team in delivering propane gas and top quality service to customers in Chester County, Lancaster County and parts of Delaware County, Pennsylvania.