Analysis
On March 19, 2012, the average residential propane
price had fallen 3 cents from last week to $1.67 per gallon (see the
table at the end of this report). The
graph below this text shows the spread in
prices from month to month and from this year compared to previous years.
Other
states
in the Midwest Region had higher prices ranging from $1.82 to $2.87 per gallon with
the region averaging $2.18. States adjacent to Nebraska, such as South Dakota, Iowa, and
Missouri, had prices of $1.93, $1.82, and $2.09, respectively.
Since the last report, Nebraska's average wholesale price had dropped 8 cents to $1.15 while
the average retail price had fallen 3 cents to $1.67 per gallon. As a result, the
rack–to–retail margin has increased to 52 cents per gallon. Of the surveyed states
in the region this week, Nebraska had the lowest average retail price but not the lowest average
wholesale price.
On the supply side, the Midwest Region inventory level was above the normal range for this
time of year with 16.6
million barrels in storage on March 16.
Notes: The annual report for the 2010–2011 winter season is
available. An archive houses annual reports from previous years.
Heating Season
The Nebraska Energy Office has participated in the State Heating Oil and Propane Program for
eleven winter seasons. During the heating season (October to March), the staff contact companies
each week who supply propane to Nebraska, collect Monday's retail price, and submit the data to
the Energy Information Administration. The Energy Information
Administration calculates the average price shown in the table below.
In previous years, Nebraska had the lowest average residential propane price each week in the
Midwest Region. The Energy Information Administration theorized that this was due to minimal
transportation costs since Nebraska's
wholesale prices were not the lowest
in the region each week. Another reason would have been the number of participating states. Since
state participation in the program is voluntary, propane prices have not been surveyed in each
state in the Midwest Region. Kansas and Oklahoma might also have had low prices—possibly
lower than Nebraska's because the two states are closer to production, refinery, and storage areas.
Off Season
During the off season (April through September), time permitting, the Nebraska Energy Office staff
continue to contact the same suppliers who were contacted during the heating season. Staff contact
suppliers once a month instead of once a week since the price of propane is usually not as volatile
during the off season. The Nebraska Energy Office staff calculate the average price, shown in the
table below, from the suppliers' retail prices on the first
Monday of the month.
State Heating Oil and Propane Program
The Energy Information Administration, the independent statistical and analytical agency within
the U.S. Department of Energy, conducts the State Heating Oil and Propane Program from October
to March—the heating season—each year. The Energy Information Administration collects
prices for the program each week from participating states and calculates a state average price,
a regional average price, and a national average price which can be seen in the report
Residential Propane Prices
by Region and State.
Midwest Region
For statistical purposes, the Energy Information Administration defines the
Midwest
Region to include the states of Iowa, Illinois, Indiana, Kansas, Kentucky, Michigan,
Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, and Wisconsin.
Price Explanation
The prices represent average home heating charge prices for delivery of consumer grade propane,
excluding taxes and cash discounts.
Sources: State Heating Oil and Propane Survey and the Weekly Petroleum Status Report.
Energy Information Administration, Washington, DC. Nebraska Energy Office, Lincoln, NE.
Note: NA = Not Available
This report was updated on March 22, 2012.
Typically, there is one week between updates during the heating season and
one month between updates during the cooling season.