712 Digital Group - top

Heating fuel costs down

News

December 25th, 2015 by Ric Hanson

As the state heads into the heart of winter, the cost of heating fuels remain low. Iowa Department of Agriculture fuels analyst, Harold Hommes says the most common heating fuel — natural gas — was one-dollar, 65 cents last week and is still one-dollar, 75 cents in the latest survey. “I don’t know the last time I saw it that far under two dollars, it’s been a decade or so, and nat gas has been especially hard hit,” Hommes says.

He says propane prices have also been flat. The latest report had propane averaging 99 cents a gallon. Propane prices can sometimes move up as heaters turn on. “We haven’t seen the usual winter bump, but I think that’s because there’s ample supplies in place. And now I think some of the retailers and wholesalers are concerned about moving that propane,” according to Hommes. Hommes says the low prices are something that’s not isolated to heating fuels.

He says it’s an overall soft commodity market, whether it be ag commodities of livestock, grains, or mines and minerals, energy. “It just seems like the commodity markets are going through a fairly soft period in a pretty significant way. These are pretty serious price levels that we just haven’t seen in some time on the energy front,” Hommes says. The soft energy market is good news Iowans when it comes to heating homes and businesses, as they lead to lower monthly bills.

(Radio Iowa)