Propane Retail Prices Edge Higher as Winter Heating Demand Grows

Heating Season and Retail Trends

According to the latest data from YCharts and the EIA, retail propane prices in the U.S. stood at $2.531 per gallon for the week of December 15. This is a slight increase from the $2.51 seen earlier in the month. As temperatures drop, residential demand for heating is starting to draw on stocks, although the growth is slower than in previous years. Analysts expect prices to fluctuate between $2.50 and $2.70 throughout the remainder of the winter.

Inventory Levels and Supply Update

Current propane inventory levels are reported as healthy, preventing any major price spikes. The market is currently up only 0.9% compared to this time last year, suggesting that production has successfully kept pace with consumption. Traders are looking toward the next storage report on December 24 to gauge whether late-December cold snaps will significantly deplete national reserves.