RVers who are still using their rigs this winter would be wise to keep a close eye on their propane levels.
Propane industry analysts are already warning of an “Armageddon” in the U.S. propane market due to low supply, high demand, and the resulting rocketing prices.
Edgar Ang, who is with the research firm IHS Markit Ltd., said U.S. propane inventories are at record lows and will remain extremely tight as the cold weather sets in. Experts are also warning that mean temperatures in the Lower 48 states are expected to drop into the 60-55 degree range by the end of October, and heating degree days (those days that signal the start of the heating season) have already begun in much of the country.
Ang said the sudden rise in propane prices “may indicate players are preparing for a propane market Armageddon.” He said some areas might be prone to see propane shortages throughout the winter.
Propane prices have jumped to their highest levels in a decade due to increases in overseas demand as well as tight production. The Energy Information Administration (EIA) also is reporting that households that use propane (including RVers) will be spending much more than last year.
Ang also said all indications are that it’s going to be a cooler winter in 2021/2022, adding to the pressure on prices and the supply market.
U.S. propane prices have almost doubled this year. While only 5% of U.S. households heat with propane, it is of course the fuel of choice for powering the utilities in recreational vehicles. The EIA said propane users can expect to spend at least 54% more this winter to keep warm.
The average per-gallon price for propane in the U.S. hit $2.691 a gallon on October 18th.