Mid-Month to Mid-Month: March Prices Up From February

Mid‑month posted and spot rates climb in Mont Belvieu, TX and Conway, KS, signaling a shift for distributors planning inventory and pricing.

According to the latest BPN Pricing & Supply Newsletter, posted and spot propane prices posted for the Mont Belvieu, Texas hub rose sharply in the second half of March, reversing the steep declines recorded in February. The Conway, Kansas market saw a similar uptick, with mid‑month averages climbing 8‑10 cents per gallon compared with the previous month. Year‑over‑year figures remain in the red, but the month‑to‑month rebound suggests that the market is beginning to absorb the earlier supply glut.

The price movement reflects a confluence of factors. Warmer-than‑expected temperatures in the Midwest reduced heating demand, while refinery output in the Gulf Coast has steadied after a period of unplanned maintenance. Additionally, a modest increase in crude oil prices has lifted the cost of propane feedstock, nudging wholesale rates upward. Distributors who delayed purchases in February to capture lower rates are now facing higher acquisition costs, prompting many to re‑evaluate inventory strategies ahead of the summer travel season.

For propane retailers, the timing of price adjustments is critical. Companies that can quickly shift purchasing volumes to take advantage of spot‑market dips will protect margins, while those relying on static contracts may see profit compression. Leveraging technology such as CustomFuelApp.com can streamline order processing, provide real‑time pricing data, and enable more agile response to market swings.

Overall, the March price rebound underscores the importance of staying ahead of market trends. As demand patterns evolve and supply chains normalize, propane professionals who blend data‑driven insights with flexible ordering platforms will be best positioned to navigate the volatility and maintain competitive pricing for their customers.