The Current State of All Things Propane
.jpg)
During his first State of the Union Address in 1982, Ronald Reagan mentioned that it was a tradition that began in 1790 with George Washington. He also jokingly told Congress that while he wasn’t actually there to hear George Washington’s Address, “it is a matter of historic record.”
December 2025
In the same light-hearted spirit, I’ll briefly highlight some key notes for the current state of things in our industry:
- Prices are still low. Belvieu propane prices are about $.12/gallon lower than the lowest daily average last December ($.7644) and $.32/gallon lower than prices were in mid-January last year ($.96).
Propane inventory levels are about 17% above the 5-year average.
The electrify-everything movement has been placed on the back burner for now in VT, MA, NY and PA.
Last Friday, in response to winter storms, cold weather and supply disruptions at Marcus Hook, PA the Federal Motor Carrier Safety Administration (FMCSA) issued Hours of Service Relief in DE, NJ, NY and PA.
Also, last Friday, in response to “emergency conditions as a result of winter storms, CDL driver shortages and below average cold temperatures” there is HOS relief in NH for the continuation of “essential services.” HOS relief was also added on Monday for VT and yesterday for CT.
Check with your State or Regional Propane Association to download a copy of the Waiver which should be kept in the driver’s vehicle.
Temperatures are moderating from the bitterly cold arctic air that we experienced during the first half of December, which NOAA expects will be about 8% colder than the average of the previous 10 Decembers. Maybe that will shorten the truck lines that have been an issue at some terminals.
12/15/25 EIA Report on Colder Winter Weather and Home Heating Expenditures
Extra Supply
Demand has been extraordinary this month, and many customers need more supply than they contracted. That’s a good thing! It’s also good that Ray Energy has procured some extra supply to help with your additional propane requirements. So, please reach out to your sales representative, they would love to help you.
The Skinny
The current state of “all things propane” is almost an out-of-body experience. Why? On the one hand we’ve barely seen a dent in record US propane inventory levels which are about 17% above the 5-year average. And WTI crude prices and Belvieu propane prices are both near the yearly low price: $55/bbl. and $.6156/gallon respectively.
At the same time, NOAA expects that this December will end up about 8% colder than the average of the previous 10 Decembers. There are supply delays and truck lines almost everywhere in the Northeast.
Nearly all our customers will need more supply this month than they contracted. That’s a good thing, but it’s also a daunting challenge. The good news is that we pride ourselves on our ability to anticipate supply and demand events rather than react to them, and we’re ready to help.
