Why Propane Costs Less than Gasoline and Other Fuels

Why Propane Costs Less than Gasoline and Other Fuels Michigan Propane

Looking for a way to save on your next energy bill? You may want to consider switching to propane household appliances or even converting your car to a propane vehicle. In this blog post, we will explain why propane is often less expensive than gasoline and other fuels. For more information on how to make the switch to propane, we recommend reaching out to a propane supply company near you.

Domestic Supply and Demand

Did you know that 90% of propane sold in the United States is produced domestically? The remaining 10% is still produced within North America. While this may just seem like a fun fact, where propane is produced has a huge effect on the price passed down to consumers.

Fuel prices are determined by supply and demand. High demand increases price, which is why you may have noticed the price of gasoline increase just before a big holiday weekend when everyone’s trying to get out of town. Low supply will also increase the price.

Since the vast majority of propane fuel sold in the United States is domestically produced, this means that supply and demand is much more consistent and predicable than it would be on the global market. With the exception of an unusually bitter winter, Michiganders can expect the cost of propane to remain relatively constant.

No Dependence on Foreign Oil

OPEC (Organization of Petroleum Exporting Countries) controls approximately 30% of the world’s oil supply. Unfortunately, this means that these oil producers are able to work together to raise the global price of oil by purposefully not supplying enough oil to meet demand. While OPEC isn’t invulnerable to outside competition and internal struggles, they still control a considerable share of the world’s oil supply.

Since the United States doesn’t produce enough crude oil to meet the demand for gasoline, we are dependent on foreign oil. Propane is less expensive than gasoline because you don’t have to worry about foreign countries controlling the price. The majority of propane gas sold in the United States is produced domestically. When you buy propane, you also have the satisfaction of supporting American workers and their families.

Energy Efficient Household Appliances

If you wish to improve the energy efficiency of your home, why not make the switch to propane? Propane-powered appliances use less energy than those powered by electricity, saving you more money on your next energy bill. For example, did you know that 14% to 18% of your utility bills are from heating water? Installing a propane gas water heater can help you save money over the long run. Likewise, propane furnaces are more efficient at heating homes because the flame temperature burns 360 degrees Fahrenheit hotter than natural gas. Energy efficiency is just one of the many benefits of propane.

Altogas is a Michigan propane supplier that’s dedicated to helping customers power everything from company fleet vehicles to household appliances. If you are interested in learning more about our residential, agricultural, or commercial propane supply services, be sure to call one of our Michigan locations in Alto, Charlotte, Edmore, and Zeeland.

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