Nebraska’s 2007/2008 midseason average was $2.92. The midseason average was $3.04 for the Midwest Region and $3.13 for the nation. From week to week, other states in the Midwest Region have had comparable or higher prices than Nebraska. States near Nebraska, such as Iowa and Minnesota, had midseason averages of $2.97 and $3.11, respectively.
Retail Versus Wholesale--
During the first half of last year’s heating season, Nebraska’s average retail price ranged from $2.11 to $2.23, while the average wholesale price ranged from $1.85 to $2.09. During the first half of this heating season, Nebraska’s average retail price ranged from $2.69 to $3.08, while the average wholesale price ranged from $2.47 to $2.90.
Last season, Nebraska’s
rack-to-retail margin fluctuated between 11 to 28 cents per gallon during the months of October, November, and December. The margin fluctuated between 16 to 42 cents per gallon during the same months this season.
Nebraska's residential propane prices began this heating season 24 cents higher than the previous season and 18 cents higher than two years ago. Prices continue to remain high due to lower inventories, high natural gas and crude oil prices, and strong petrochemical sector demand. Inventories started the heating season at a lower level due to reduced Canadian imports during the build season (April through September). Throughout the first half of the heating season, propane prices gradually increased 25 cents reaching $1.91 by the end of December. The average price at the beginning of 2008 was $1.91, which was 49 cents higher than a year ago. During the last two years, two states in the Midwest Region, Ohio and Kentucky, experienced average prices over $2 per gallon. This year, only three states did not surpass the $2 mark—North Dakota, South Dakota, and Nebraska.
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 2007 was $1.71. The average price in October during previous heating seasons is set out below: