Propane prices in Arkansas
Different things cause propane prices in Arkansas to change. First of all, some delivery companies charge more than others because customers don’t always ask about the price of propane or look it up.
Other reasons have to do with when the propane is bought. Many propane dealers lock in the price of propane ahead of time and then resell it at that price. This way, even if the market price goes up or down, they don’t lose money. Each state and city can charge taxes and service fees, which propane dealers often pass on to customers in the form of a higher price.
Please read the next article for the most up-to-date information on how much propane prices in Arkansas.
Why the price of propane in Arkansas goes up and down
Propane is still one of the cheapest ways to heat your home and power your appliances in Arkansas. Propane does all of these things and at the same time cuts down on carbon emissions. Also, price trends in the past have shown us that what goes up must come down. Just a question of when. Examining the variables that influence the propane prices in Arkansas.
The disparity between supply and demand
When there is a lot of demand and a smaller-than-average supply, propane prices in Arkansas will go up.
The use of propane as a feedstock for petrochemicals, which are mostly made from crude oil and natural gas, has led to a rise in propane demand around the world. These petrochemicals are used to make many other things, like plastic, paper, glue, and cleaning products. Most propane is used by companies that make petrochemicals.
Propane exports hurt propane prices in Arkansas
The United States is a major supplier of propane and that its export business is growing. This export boom increases demand even more in an industry that generally does not store big quantities of propane at once, which is favorable for the large propane wholesalers. Large propane suppliers are compelled to furnish the amount of propane they’ve promised to export, leaving even less propane accessible for domestic usage.
This contributes to the domestic price of propane. So propane prices in Arkansas could also be pushed up due to scarcity of supplies.
Russia and Ukraine are in conflict
When there is war, political strife, conflict, or a natural disaster somewhere in the world, it can affect the prices of crude oil and natural gas. Propane has a ripple effect because it comes from both crude oil and natural gas.
Before the war in Ukraine started at the end of February, energy prices were going up because of the possibility that Russia would face sanctions if it invaded Ukraine. Russia is the third-largest producer of oil and liquid fuels in the world. Even the possibility of a disruption in Russia’s energy supply will have a big effect on what commodities traders buy and sell, and by extension, on the price of propane.
On March 14, 2022, Propane price in Arkansas was 2,877 Dollars per gallon, which was the highest it had ever been.
Effect of weather on propane prices in Arkansas
If the supply goes down when demand is high, like during the colder months, the market gets tighter and propane prices in Arkansas will go up.
When it’s very cold or stays cold for a long time, people may start to panic buy, like when there wasn’t enough toilet paper at the start of the pandemic.
And it’s not just cold weather that can make more people want propane. When it’s time for crops to grow, heavy rains cause bumper crops that need to be dried quickly and in large quantities. Propane is one of the fuels that are used to dry crops.
Propane demand by season
During the summer, many people use grills in their backyards to cook, and more people spend time outside. This means that more heavy machinery is needed for construction projects, and farms need a lot of tools to bring in their crops. Propane is needed for a lot of these things, so the demand for it tends to go up a lot.
According to economic theory, prices go up when demand goes up but supply stays the same. Since propane is used a lot in the winter and summer, prices are usually lower in Arkansas in the fall and spring.
See more: Propane Price Focast In The Year 2022
Propane prices in Arkansas
As we’ve already said, the price of propane in Arkansas will depend on where it comes from.
Here is a list of propane prices in Arkansas that is updated once a week. Let’s check out the chart!
Even though it’s March 2022, we can see that the war between Russia and Ukraine has caused propane prices in Arkansas to reach their highest levels ever ($2,877/gallon). In the spring 2021, the price of a gallon of propane was only $2,496.
Between January and December of 2018, the price of propane in Arkansas went down from $2,408 per gallon to $2,214 per gallon. (Based on the data from the fifth week)
In January 2019, propane cost $2,220 per gallon in Arkansas. By December 2019, the price had gone down by $0.425 per gallon to $1,805. (Based on the data from the fourth week)
Due to the severe impact of the Covid-19 epidemic in 2020, the propane price in Arkansas from January 1,805 USD/gallon is likely to skyrocket. By the end of the year, the price per gallon of propane had increased to $1,831. Due to rising user demand and human resource issues, there is a significant difficulty with the supply.
In Arkansas, the price of propane went up from $2,042 per gallon in January 2021 to $2,491 per gallon in December 2021. The big effects of the Covid-19 epidemic are to blame again for this rise. (The Omicron and Delta variants are back).
More than half of 2022 has passed, and in January the price of propane in Arkansas was $2,485 per gallon. By March, the price of propane had reached an all-time high.
Based on year-over-year data, it is predicted that propane prices will be able to fall by December 2022 if the Russia-Ukraine conflict ends and there is no further impact from the Covid-19 pandemic.