Propane demand, supply and cost of shipping are the main factors that affect the price of propane in Texas. The supply and demand of propane vary depending on the weather, inventory levels and domestic production.
There is moderate consumption of propane in the summer months resulting in building up of propane stocks. During the winter months, there is a higher demand for propane resulting in higher propane prices. Exceptionally cold weather anywhere in the United States can impact prices in Texas due to its overall impact on demand. The proximity of supply also affects propane prices. Customers farthest from the major supply sources pay higher prices due to the high transportation costs incurred by suppliers.