Tankfarm Warnings Confirmed By Top Government Agency
For weeks Tankfarm has been warning propane consumers that energy costs this coming winter will be much higher. This week the US Energy Information Administration confirmed our analysis in their ‘Winter Fuels Outlook’. The EIA agrees with Tankfarm the causes will be colder temperatures, combined with higher propane prices- for a combined 18% increase in overall costs for propane users. On average they say this will cost each home in the Northeast US an additional $221 in heating costs.
13% Colder and 18% More Expensive
The EIA bases its weather predictions on the analysis of the National Oceanic and Atmospheric Administration (NOAA), which believes temperatures will be 13% cooler this winter than last. The EIA also noted that propane inventories going into this winter are lower than last year at this same point. They noted that inventories are currently 9% below average compared to the last 5 years.
No One Safe
Combined with an 80% increase in wholesale propane prices over just the last few months, it seems all but certain that consumers will be shelling out more money to keep warm this winter. It’s cold comfort to know that other consumers using electricity, oil and natural gas will be similarly impacted.
Tankfarm Interest Increases Dramatically
It’s not a big surprise that Tankfarm has been experiencing explosive interest in its propane buying program, with hundreds of applications coming in each month. The program promises to save consumers an average $400-$600 per year- more than offsetting the impact of higher prices and colder temps.