Propane Prices Plunge

The Wall Street Journal recently reported on propane prices in North America “tanking."  The 13-year low is driven by a glut of supply caused by oil and natural gas production in the US and Canada, of which propane is byproduct.  Just this year propane prices have realized an 18% decline in the U.S., and prices in Western Canada are negative for the first time ever, meaning producers are paying buyers to take the fuel.  Lower propane prices are expected to trickle down to consumers for heating homes and businesses, as well as reducing costs for the grilling season.  Furthermore, the time is right for Truck Center Companies’ customers to consider propane as an alternative fuel for trucks.  Freightliner Custom Chassis offers several models of propane-powered class 5-7 trucks in a variety of applications.  In July TCC will deliver 2 new FCCC S2G chassis for propane delivery trucks, and we have seen interest in MT45/55 walk-in van chassis for use in multiple industries, including linen and uniform delivery, parcel delivery, construction, utilities and many more.  Costs for propane systems are considerably lower than CNG systems, which makes the barrier to entry low.  Potential fuel savings provide a relatively quick ROI, and forecasts indicate low prices, under $1.00/gallon, for the next couple years.  Low fuel prices paired with alternative fuels incentives provide excellent justification for considering propane-powered trucks NOW!

Joe Hurley
-- Fuel Solutions Specialist