Analysis
The average wholesale propane price on March 14, 2005, increased 5 cents from last week to 89 cents per gallon (see the table at the end of this report). The graph below shows the spread in Nebraska prices from month to month and from this year compared to previous years. The price was 27 cents (45 percent) higher than the price was at this time last year. Other states in the Midwest region had comparable wholesale prices ranging from 85 to 95 cents per gallon with the region averaging 91 cents. States adjacent to Nebraska, such as Kansas, South Dakota, Iowa, and Missouri, had prices of 89, 90, 90, and 89 cents, respectively. With 9 million barrels, the Midwest region inventory level was in the normal range for this time of year.
This is the last week of the traditional heating season. Wholesale prices will not be reported during the off season or build season. The build season is the period from April to September when heating fuel demand is usually less which allows stocks to build.
Notes: The annual report for the 2004-2005 winter season will be available in June. The archive houses annual reports from previous years.
Heating Season
The Oil Price Information Service collects wholesale propane prices each week for Nebraska and eleven (11) other states in the Midwest Region during the heating season (October to March). The Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy, uses the prices collected by the Oil Price Information Service to calculate a state average price, a regional average price, and a national average price which can be seen in the report Wholesale Propane Prices by Region and State.
Off Season
Prices are not collected during the off season (April through September).
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.
