Nebraska's Average Residential Price of Propane

Average Residential
Propane Prices in Nebraska

Analysis

On January 28, 2008, the average residential propane price had relatively no change from the previous week at $1.90 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. This week's average price was 45 cents (or 31 percent) higher than the price at this time last year.

Other states in the Midwest Region had higher prices ranging from $1.97 to $2.70 with the region averaging $2.30 per gallon. States adjacent to Nebraska, such as South Dakota, Iowa, and Missouri, had prices of $1.99, $1.97, and $2.22, respectively.

Wholesale prices had risen more than two cents this week, and the rack-to-retail margin decreased to 40 cents.

On the supply side, the Midwest Region inventory level was in the normal range for this time of year with 15.2 million barrels in storage on January 25.

Notes: The annual report for the 2006-2007 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 seven years. 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 the Midwest Region, Nebraska has had the lowest average residential propane price each week. The Energy Information Administration theorizes that this is due to minimal transportation costs since Nebraska's wholesale prices are not the lowest in the region each week. Another reason would be 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), 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.

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Nebraska's Average Residential Propane Prices
2001/2002 - 2007/2008

	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2001/2002
First Monday	$0.815	$0.771	$0.768	$0.769	$0.773	$0.736	$0.736	$0.733	$0.720	$0.708	$0.693	$0.714
Second Monday	$0.797	$0.772	$0.777	$0.770	$0.735	$0.739
Third Monday	$0.798	$0.779	$0.773	$0.770	$0.735	$0.734
Fourth Monday	$0.786	$0.770	$0.773	$0.773	$0.734
Fifth Monday	$0.774		$0.769
	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2002/2003
First Monday	$0.721	$0.743	$0.744	$0.806	$0.901	$1.181	$0.886	$0.849	$0.845	$0.882	$0.899	$0.934
Second Monday	$0.734	$0.743	$0.747	$0.806	$0.973	$0.975
Third Monday	$0.736	$0.743	$0.784	$0.843	$0.943	$0.966
Fourth Monday	$0.739	$0.743	$0.793	$0.855	$0.948
Fifth Monday			$0.799
	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2003/2004
First Monday	$0.925	$0.964	$0.945	$0.959	$0.990	$0.984	$0.981	$0.971	$0.982	$0.974	$1.038	$1.143
Second Monday	$0.960	$0.955	$0.942	$1.027	$1.011	$0.983
Third Monday	$0.966	$0.952	$0.957	$1.008	$0.993	$0.984
Fourth Monday	$0.968	$0.952	$0.956	$1.006	$0.992
Fifth Monday			$0.959
	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2004/2005
First Monday	$1.158	$1.290	$1.265	$1.237	$1.220	$1.194	$1.220	$1.209	$1.202	$1.225	$1.232	$1.415
Second Monday	$1.195	$1.297	$1.248	$1.236	$1.196	$1.218
Third Monday	$1.227	$1.290	$1.251	$1.228	$1.190
Fourth Monday	$1.312	$1.278	$1.251	$1.228	$1.194
Fifth Monday		$1.288		$1.224
	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2005/2006
First Monday	$1.475	$1.490	$1.440	$1.524	$1.437	$1.414	$1.361	$1.403	$1.417	$1.446	$1.514	$1.490
Second Monday	$1.469	$1.468	$1.455	$1.498	$1.438	$1.417
Third Monday	$1.474	$1.460	$1.508	$1.461	$1.422
Fourth Monday	$1.479	$1.458	$1.527	$1.460	$1.421
Fifth Monday	$1.493			$1.443
	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2006/2007
First Monday	$1.418	$1.399	$1.454	$1.461	$1.452	$1.500	$1.556	$1.474	$1.486	$1.494	$1.548	$1.605
Second Monday	$1.418	$1.397	$1.453	$1.454	$1.477	$1.501
Third Monday	$1.406	$1.403	$1.461	$1.452	$1.489
Fourth Monday	$1.401	$1.424	$1.468	$1.448	$1.496
Fifth Monday	$1.398			$1.442
	Heating Season						Off Season
	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
2007/2008
First Monday		$1.841	$1.883	$1.953	NA	NA	NA	NA	NA	NA	NA	NA
Second Monday	$1.657	$1.874	$1.873	$1.951	NA	NA
Third Monday	$1.679	$1.881	$1.881	$1.903	NA	NA
Fourth Monday	$1.742	$1.888	$1.887	$1.899	NA
Fifth Monday	$1.779		$1.907

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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 January 31, 2008.
Typically, there is one week between updates during the heating season and
one month between updates during the cooling season.

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