Propane Prices Affecting The Family Budget

By Craig Day, The News On 6

TULSA, OK - Prices for oil and gasoline have dropped in recent weeks.  But, why are so many people in Green Country paying hefty prices for propane to heat their homes?

Stacy Courtney is running really low on propane for her Okmulgee County home.  But, she's waiting to buy more until the price goes down.

"Can't afford to fill it up every time because then you're paying $400 and something every time you fill it up," said Stacy Courtney.

The average price for propane is $2.65 a gallon, up from $2.15 this time last year.  The higher cost is really impacting Courtney's budget.

"You just buy less groceries.  Go to less places.  You don't go to the grocery store as much.  You don't go running around as much.  Go out to eat as much," said Stacy Courtney.

Propane is a by-product of refining crude oil or processing natural gas.

The Oklahoma Propane Gas Association says historically propane goes up or down along with the price of oil.  The problem now is much of the current propane on the market was refined back when the price of oil was much higher.

It seems in the propane business, timing is everything.  Most years, you would usually want to buy now, before it gets colder.  But, the price of propane right now is actually cheaper than it was just a month ago.  Again, it's all tied to the price of oil.

Usually the price also goes up when the supply of propane tightens during cold weather.  But, it all depends on what happens with oil, which is anyone's guess.

"It's just going to get cold soon and we're going to have to have it," said Stacy Courtney.

As for Courtney, she'll keep watching the price, in hopes of buying low.  And, she hopes we don't have a cold and expensive winter.

Transportation costs to rural areas also impacts the price of propane.

So how can you save money if you can't wait until prices drop?

Some distributors may offer a discount, sometimes up to ten cents a gallon, if you pay in cash because it saves them money on billing costs and collections.