Nebraska’s 2009/2010 midseason average was $2.34. The midseason average was $2.46 for the Midwest Region and $2.71 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 $2.37 and $2.46, respectively.
Retail Versus Wholesale--
During the first half of last year’s heating season, Nebraska’s average retail price ranged from $1.88 to $3.50, while the average wholesale price ranged from $1.57 to $3.27. During the first half of this heating season, Nebraska’s average retail price ranged from $2.15 to $2.40, while the average wholesale price ranged from $1.89 to $2.17.
Last season, Nebraska’s
rack-to-retail margin fluctuated between 7 to 49 cents per gallon during the months of October, November, and December. The margin fluctuated between 16 to 39 cents per gallon during the same months this season.
Nebraska's residential propane prices began this heating season 74 cents lower than the previous season. Prices were lower due to the drop in crude oil prices. Inventories started the heating season at an adequate level in Nebraska. At the beginning of October, inventories were at 347 thousand barrels, which was comparable to previous years. Throughout October, November, and December, propane prices steadily increased 41 cents reaching $1.70 by the end of December. The average price at the beginning of 2010 was $1.74, which was 18 cents higher than a year ago.
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 2009 was $1.36. The average price in October during previous heating seasons is set out below: