PROPANE PRICES

By Pat McGonagle, Vice President & Chief Financial Officer

As we approach the winter heating season, it is a good time to look at propane pricing. Industry experts expect 2025-26 winter propane prices to align with last year's pricing. The pricing is primarily due to high inventory levels and lower than projected crude oil prices.

The Energy Information Administration (EIA) recently reported that the national propane inventory is above the five-year average. Propane storage builds up in months when use is relatively low. This year, propane inventories were 12 million barrels more than the previous five-year average. In October 2025, propane inventories totaled 103 million barrels. This increased inventory offers a buffer of supply heading into peak demand months.

What's Driving Prices In 2025–26?

Energy pricing continues to respond sharply to shifts in demand and delivery constraints. Cold weather can rapidly increase propane demand, and the EIA’s winter forecast expects temperatures in the Midwest to be slightly colder than average. Price surges can happen when the propane supply cannot keep up with demand.

Here are a few situations that can cause propane prices to increase:

• Cold snaps can spike local demand, draining inventories quickly and leading to emergency deliveries at higher prices.

• Transportation issues in the Midwest can delay deliveries, especially during winter storms.

• Export growth has reduced the buffer of available U.S. propane—higher overseas demand can mean tighter supply here at home.

This year, propane pricing remains closely tied to the natural gas and oil markets. Those markets fluctuate, and any instability with those commodities may impact retail propane.

How We Help You Plan Ahead

The Energy Cooperative uses a detailed planning model to secure propane supply well before winter. We work with multiple suppliers to lock-in our propane pricing. This is one way we ensure our members have the propane they need year-round. Ohio's retail propane prices average around $2.60 per gallon, reflecting the continuing impact of delivery costs and wholesale fuel pricing. Members of The Energy Cooperative enjoy a locked in pricing of $1.99 per gallon until July 2026.

We appreciate your trust in The Energy Cooperative and remain committed to delivering clean, affordable energy to our members this winter and for years to come.