Residential Cost of Propane Compares Well

News
The National Propane Gas Association (NPGA) reports that the Department of Energy (DOE) recently released its annual representative average costs for five different residential energy sources. The five sources are electricity, natural gas, No. 2 heating oil, propane, and kerosene. The costs, which will become effective Sept. 14, are used to determine the estimated annual operating costs of appliances and products covered by the Energy Policy and Conservation Act.

Propane compares very well with electricity, as its cost per million Btu of energy is listed at $17.81, whereas electricity is listed at $38.28. Propane is better than kerosene and No. 2 heating oil and trails only natural gas at $10.13 in cost effectiveness. The listed cost for propane is equivalent to a cost of $1.63 per gallon and was arrived at using simulations used to produce the July 2020 EIA Short-Term Energy Outlook.

A copy of the DOE notice can be viewed at https://www.govinfo.gov/content/pkg/FR-2020-08-14/pdf/2020-17803.pdf

SOURCE: The Weekly Propane Newsletter, August 27, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.

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