Why Are Propane Prices Rising?

Dear Valued Customer,

As we approach the winter season, we wanted to reach out and simply say thank you for being a part of the Couch Oil Family. We also want to give you some helpful information about the recent news related to the rising cost of propane and other fuels. Because we appreciate and value our relationship with you, we are committed to keeping you well-informed about issues that impact you and your family. Please don’t hesitate to reach out to us with any questions you have about this or any other topic that may arise.

 

Some helpful information to answer some possible questions that you may have:

Why is the price of propane rising so rapidly?

Wholesale propane prices have increased because of high international demand and low global propane supply. The U.S. propane market has tightened because of the increase in exports, and wholesale U.S. propane prices have risen in line with wholesale propane prices in overseas markets. (US Energy Information Administration). These and other increases mean that our cost of doing business is also significantly impacted. We are committed to providing you with the highest quality customer service and products and the best possible price. We constantly monitor and adjust pricing based on market fluctuations and will strive to continue to deliver a great product at a fair price.

 

How will the increase impact my monthly bill?

The market prices fluctuate on a daily basis. As we purchase propane and prepare for delivery, our costs go up and down with the market fluctuation. We always have a fair marketable price, as we continue to provide our Couch Oil family with unmatched customer service. Monthly bills can increase as the temperature drops and as the market rises.

 

How can I reduce my costs/usage? How can I be more efficient?

There are a number of ways you can manage your propane use. Fuel efficiency can be increased by keeping your thermostat at a constant set temperature, to help maintain a comfortable living space. Heating units typically work harder to raise temperatures than to maintain temperatures. Upgrading appliances for more efficiency, and even adding additional auxiliary heaters may be an option. Tankless water heaters or even gas logs are now available with IPI ignition, to eliminate the standard ‘’standing pilot’’. Standing pilots can use up to 75-100 gallons per year. Also, signing up for a budget payment is always a good way to help determine a regular monthly payment.

 

Do you expect further increases this year?

While we can’t predict market conditions, it seems likely that prices will continue rise into the near future. As costs for gasoline, diesel fuel and other marketable items rise, propane will typically follow. We anticipate some increase as the cold weather approaches and demand for heating fuels increase. We will always strive to deliver the highest quality service and product at a fair price, and do our best to keep costs down.

 

If the market price decreases, will we also decrease our prices? 

If the market prices decrease, we will typically lower our delivered prices in line with the market. Our commitment is to always maintain a fair and marketable price. This is what has kept us in business for over 70 years.

 

We hope this information helps to answers your questions about the current increase in fuel costs. We are so grateful for your trust and business. We look forward to serving you for many years to come. Please don’t hesitate to reach out with any questions!

 

– JASON BROOKS (PROPANE MANAGER)

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