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What factors affect propane gas prices?

I don't think they're the same as oil prices.

asked by armofpilot (14)

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Tags:  money

answers

Propane gas prices are correlated with oil prices, but not perfectly. Propane prices also vary with refinery capacity and the usage of the other oil byproducts.

reply
posted by xyz123 (99)
7 votes

Futures markets largely determine the price of propane gas. If investors believe that the supply will increase or that the demand will decrease, the prices go down. The opposite is also true. While the actual supply and demand play a role as well, the expectations of future supply and demand have a large effect.

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posted by MikeyJ (123)
6 votes

When oil prices go up, in general, propane goes up as well. The economy and stock market affect the price as well. Demand and supply; politics. In general everything in the gas or propane market are affect by the general market except it seems that once the prices goes up they stay up longer and drop significantly slower.

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posted by maxwell (256)
5 votes

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