Prepare for Winter: Iowa Propane Consumers Benefit from Lower Prices and Abundant Supply

With propane prices currently lower than the previous year and supplies well above the five-year average, Iowa’s Secretary of Agriculture, Mike Naig, urges propane consumers to prepare for the upcoming colder months and winter conditions.

“Even though we’ve been experiencing more summer-like weather lately, we must remember that colder temperatures are coming. Now is an excellent time to fill up your propane tank if you rely on it for heating your home or livestock barn,” emphasized Secretary Naig. “With propane prices lower than last year, increased supply levels, and ongoing drought conditions expediting grain drying in the fields, the conditions are favorable for propane users to prepare for winter proactively.”

Data published by the United States Energy Information Administration (EIA) as of October 4, covering the week ending September 30, revealed that national propane inventories amounted to 101.4 million barrels (mb), equivalent to 134.6 days of supply. Propane supplies in the Midwest (PADD 2) region were at 26.8 mb, a figure exceeding the previous year when stocks stood at 24.5 mb.

As of October 4, the average propane price in Iowa was recorded at $1.53 per gallon, a decrease from $1.89 a year ago. From October 2 to March 2024, the Iowa Department of Agriculture and Land Stewardship will compile a weekly state average propane price in collaboration with the EIA. These findings will be available in the department’s weekly fuel reports.

The Iowa Propane Stakeholders Group, formed in the autumn of 2019, was a response to propane supply challenges in the state. These challenges arose due to the demands of grain drying, driven by a late planting season coinciding with an early cold spell that amplified the requirements for livestock and home heating. Since then, Secretary Naig and the Iowa Department of Agriculture and Land Stewardship have maintained regular communication with a coalition of propane stakeholders. This group includes representatives from the governor’s office, members of the Iowa legislature, the Iowa Propane Gas Association, propane suppliers, and various agricultural organizations. They aim to anticipate and address potential issues within the propane supply chain. If cultural businesses encounter propane shortages, contact Paul Ovrom of the Iowa Department of Agriculture and Land Stewardship at 515-242-6239 or paul.ovrom@iowaagriculture.gov. Alternatively, they can contact Michelle Wicker of the Iowa Propane Gas Association at 515-564-1260 or mwicker@iapropane.org.