Division of Energy
Missouri’s Total Bill for Propane at a Glance
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Missouri’s Total Bill for Propane, 2009
Propane is the primary heating fuel for many Missouri households. In 2009 propane expenditures constituted 40.6 percent of expenditures for petroleum outside the transportation sector. In 2009 Missouri ranked 13th among all states in residential expenditures for propane.
In 2009 Missouri’s residential sector accounted for about 56 percent of total state expenditures for propane. Approximately 13 percent of Missouri households heat with propane. About 7.8 percent of the Missouri residential sector’s total energy bill is for propane. Agriculture and industry are the other major users of propane in Missouri.
Increases in Missouri’s Total Expenditures for Propane, 1989-2009
End user expenditures for propane tripled between 1989 and 2009, increasing by a compound annual growth rate of 6.08 percent during that time period (see Figure 1).
As with natural gas, residential and agricultural demand and expenditures for propane varies with the weather.
Expenditures for propane, like those for electricity and transportation fuels, trended upward since 1990. The general upward trend continued with steady increases between 2002 and 2006 and between 2006 and 2008. Between 2008 and 2009, expenditures decreased by 29.7 percent.
Propane expenditures are variable due to a number of unpredictable factors that affect propane demand, supply and price. The demand pattern for propane is highly seasonal. Residential demand peaks during the winter heating season and the major agricultural use for propane, crop drying, occurs in the autumn. Demand increases about 50 percent from its low point to its peak. Both residential and agricultural demand for propane depends heavily on weather. Moreover, adequate inventories entering the heating season are critical to keep prices from increasing sharply. Price volatility can be induced by swings in the price of crude oil as well as changes in demand due to unusually mild or severe weather.
Additional information on factors affecting propane demand, supply and prices is available online. During the winter heating season, the Division of Energy surveys propane retailers and reports price information in bimonthly Energy Bulletins.