Nebraska’s midseason average was $2.31. Last year’s midseason average was $1.66. The 2005/2006 midseason average was $2.50 for the Midwest Region and $2.52 for the nation. From week to week, other states in the Midwest Region usually have had higher prices than Nebraska. States near Nebraska, such as Iowa and Minnesota, had midseason averages of $2.38 and $2.52, respectively.
Retail Versus Wholesale--
During the first half of last year’s heating season, Nebraska’s retail price ranged from $1.53 to $1.79, while the wholesale price ranged from $1.18 to $1.62. During the first half of this heating season, Nebraska’s retail price ranged from $2.01 to $2.80, while the wholesale price ranged from $1.71 to $2.59.
Last season, Nebraska’s
rack-to-retail margin fluctuated between 11 to 40 cents per gallon during the months of October, November, and December. The margin fluctuated between 10 to 46 cents per gallon during the same months this season.
Residential propane prices began this heating season more than 30 cents higher than the previous season due to increased natural gas prices and crude oil prices. Propane prices were stable through the first half of the heating season although, in the last two weeks of December, there was a seven-cent increase due to cold weather. Prices started 2006 at $1.52, which was nearly 30 cents above prices a year ago. Two states in the Midwest Region, Ohio and Kentucky, experienced prices over $2 per gallon during the first half of this season.
Average Price in October--
The average price in October is indicative of weather conditions and the winter supply outlook. The average price in Nebraska in October 2005 was $1.48. The average price in October during previous heating seasons has been: