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The number one thing you can do to protect yourself from propane price spikes this winter:

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You’re not imagining it: Propane prices are creeping up. Here’s why — and what you can do about it.

After a very long year indoors, many of us headed outside over the summer to take advantage of more opportunities to celebrate together. As part of that, you may have noticed that propane costs more than you may have seen in the past.

As you may know, the price of fuel fluctuates based on several variables. Propane prices are higher this fall/winter season. Below you’ll find an explanation of why and, most importantly, what you can do to help keep your winter heating bills in check.

Why has the price of propane been rising?

Low supply and increased fuel consumption have driven the rise of propane prices in 2021. In 2020, U.S. production of all fuel, including propane, decreased for a period. Shortly thereafter, consumption of fuel increased due to an unexpected cold snap in Southern states. While current production levels have improved, demand for U.S. propane remains higher than expected, and the majority of production is reserved for exports, leaving domestic storages at their lowest levels in several years.

That’s why we’ve been seeing so many news reports on the topic. Experts in The Wall Street Journal reported in an article this July that “propane has rarely been so expensive this time of year… propane supply is nearing a five-year low."

Here’s the good news: While propane prices have climbed more than usual during this year, there are steps you can take to ensure you’re getting the most stable price for your propane and remove worries associated with volatility in propane markets.

Lock In Your Price

AmeriGas offers several options for existing customers to help you plan and manage your heating bills year-round.

Fixed Price or Guaranteed Price programs allow our existing customers to pay a set price for an annual contract term. This way, your price per gallon stays the same — from month to month or from delivery to delivery, depending on the plan you choose. With AmeriGuard (monthly payments) and AmeriLock (pay by delivery), you get unlimited gallons at a fixed price. An annual enrollment fee applies and your contract is automatically renewed. The Pre-Buy program allows you to pre-pay for a set number of gallons without an enrollment fee. These programs start in June and end the following May. Enrollment is based on availability.

Let’s say you’re enrolled in AmeriLock and fill your tank in September. Then the cost of propane per gallon goes up in November, but your next delivery isn’t until January. Instead of seeing that cost increase on your next bill, you simply continue to pay the contracted price.

Another option available to new or existing customers is Convenience Pay. Convenience Pay is a budget friendly option available without a program fee, which spreads your expected annual propane expenses over the year so that you have predictable monthly bills. Instead of paying for your full tank delivery at once — you pay a flat monthly rate, which may be recalculated quarterly.

Whether you're interested in locking in your propane price per gallon or a set monthly rate, these plans are steady, reliable, and convenient. We’re happy to provide you with a more stable bill so you can better plan your home finances. These plans come with some restrictions, and availability is limited so contact us today to see if fixed pricing would work for you. Convenience Pay can be priced and quoted online! 

Advance Planning: Order Early or Automate Deliveries

For our new and existing customers, the number one thing you can do to get ready for the winter is to plan ahead.

For customers who notify us when it’s time for a delivery, you will need to monitor your usage and tank level and order when your tank reaches 30 percent full. It’s easy and convenient to schedule your delivery online through MyAmeriGas. Once you’re logged in, go to the Deliveries tab and select Upcoming Deliveries.

If the option is available, we encourage you to sign up for automatic delivery. Automatic delivery is an option that allows AmeriGas to estimate your usage and send out a delivery when you’re getting low. It takes the burden off of you and allows us to estimate and prepare for your delivery. Right now is the perfect time to sign up! Don’t pay more than you need to for home heating this winter and don’t wait to lock in your propane price.

Lock in your propane price today — or contact us for advice about your situation.