If you rely on propane for your home, you might’ve noticed something strange this April: prices jumped—fast. Let’s break it down with some real numbers, and more importantly, what it means for you as a homeowner.
The Data:
In mid-April, the wholesale price of propane at Mont Belvieu (the industry’s central pricing hub) surged 13.25 cents higher than May contracts. Even more striking, it was 17.75 cents higher than Conway’s April pricing.
That kind of short-term spike? It’s rare. It caught the entire industry off guard, because all the usual red flags—supply issues, production drops, import delays—just aren’t there.
In fact:
- Production is strong: Holding steady at 2.744 million barrels per day—on par with this time last year.
- Imports: At 99,000 barrels per day, right in line with the five-year average.
- Fractionators: Operating at 98.2% efficiency, meaning nearly all the raw propane from gas processing is being converted and moved downstream.
Despite strong production, inventories dropped by 1.284 million barrels in a single week. That’s significant. In fact, propane ready for sale—after processing—fell by 1.603 million barrels.
To meet demand, the market had to pull propane from storage—about 229,000 barrels per day. That means demand outpaced not only daily production, but also exceeded what refiners and imports added to the pool. Compared to the same week last year, that’s a 3.27 million barrel swing in available supply.
Both domestic and export demand skyrocketed:
- Domestic demand: Up 386,000 barrels/day vs. the same week last year.
- Export demand: Up 391,000 barrels/day over last year.
That’s a total weekly demand increase of 777,000 barrels/day year-over-year. Some experts speculate that international buyers may be loading up before tariffs kick in, adding pressure to an already tight week. But the surge in domestic demand? Still a bit of a mystery.
What Does This Mean for Homeowners? Here’s the bottom line for you:
- This spike is short-term. Forward pricing for summer and winter months is already returning to normal levels.
- You might see a bump if you're filling your tank right now.
- Smart move: Call us today (855-976-4141) to learn about our even-payment plans to protect against short-term market volatility.
Why Tankfarm Is Built for Moments Like This – So You Don’t Have To Stress About Propane. At Tankfarm, we use smart tank monitors and transparent pricing tools to keep you ahead of market swings. No guessing games. Just better tech, better service, and fair pricing—always. We’re not just watching the market—we’re building tools to help you navigate it.
We do propane, you do life. Need help with your next fill or want to talk through our even-payment plans? Call us today at 855-976-4141
Want to dive deeper? Check out the full industry breakdown here
