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In today's economy, many factors affect the price of all goods -- including propane. Virtually every domestic fuel source has experienced price hikes recently compared with past years. There are four main factors that contribute to higher propane prices: |
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Higher Crude Oil and Natural Gas Prices. Because propane is produced from both crude oil and natural gas, its price generally follows the prices of those energy sources. |
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The Nature of Supply and Demand. While propane is produced year-round, residential demand for propane is highly seasonal. This seasonality causes inventories to increase when demand is low (summer) and decrease when demand is greater (winter). Higher demand almost always leads to higher prices. |
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Seasonal Weather Conditions. Colder temperatures during the winter months increase the demand for propane, particularly for home heating, which reduces supplies and leads to higher prices. However, propane furnaces keep your home warmer. |
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International Influences. The global propane market is constantly changing. New customers all over the world are turning to propane as a home energy source, particularly in growing Asian markets like China. As a result, when world supplies are constant and there is increased competition for propane, these economic forces often lead to prices being raised. |
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What is Penn Valley Gas doing to help me?
The propane industry moves quickly to meet demand. Regional storage and transport capacity have improved, allowing propane supplies to easily move from areas of surplus capacity to areas of greater need. The industry works hard to meet the demand of a potentially cold winter, despite hurricanes and other factors that disrupt oil and natural gas supplies.
We've prepared for the demands of this winter by diversifying our supply and ensuring that we have the employees and equipment needed to meet all of your energy needs. You can count on us for excellent service and reliable deliveries at a fair price. Additionally, our Equal Payment Plan allows you to spread your annual costs over 10 months, which means you have the convenience of making equal payments over the winter when your usage is at its highest. |
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What can I do to lower my energy costs?
While neither you nor Penn Valley Gas can control the factors contributing to higher fuel prices, you can take some simple steps to lower your energy bills year-round. |
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Home Heating: |
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Enroll in our Equal Payment Plan to spread your annual costs over 10 months and enjoy the convenience of making equal payments over the winter when your usage is at its highest. |
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Inspect and tune-up your residential heating system regularly. A properly working heating system is more efficient and will save you money. |
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Change your furnace filter monthly. Clean filters will increase efficiency. |
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Invest in a furnace thermostat timer that lowers your home's temperature when you are not at home. You can cut annual heating bills by as much as 10 percent per year by turning your thermostat back 10-15 percent for eight hours per day. |
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Protect against drafts by caulking and weather-stripping around windows, doors and other openings such as ducts, fans and vents. |
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Close vents and doors in unused rooms. Make sure your attic and basement are properly insulated. |
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Water Heaters: |
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Decrease your water heating bill by turning down your water heater from the standard 120 degrees to 115 degrees. |
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Install flow-restricting showerheads. You can reduce hot water usage by up to 50 percent without affecting shower pressure. |
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Run washing machines and clothes dryers with a full load. |
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