Learn about actual and potential costs
How much should I pay for Propane?
What is the average price of Propane?
This procurement report includes pricing information to help you purchase Propane. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Propane been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Propane yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Propane?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Propane with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase Propane?
ProcurementIQ estimates that currently there are 4,510 suppliers of propane. The top four suppliers of propane account for less than 30.0% of total market revenue in 2019, indicating a low level of market share concentration. The substantial fragmentation in the market is partly due to the dispersion of upstream oil... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
What is your annual propane production capacity?
What share of your propane production is destined for the domestic market?
Have you experienced supply disruptions or shortages? If so, how did you ensure your clients received their propane supply?
What systems do you have in place if your propane supply runs low or stops?
In the event that your company does not properly follow regulations, how will my business be affected?
What measures do you take to ensure that your company is meeting all local regulations?
How do you communicate changes in regulations to your customers?
How have regulations affected the prices of your products in the past three years?
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Key elements for every RFP
What should my Propane RFP include?
Buyers should specify the total budget for the purchase.
Buyers should state their preference for a pricing model.
Buyers should ensure the proximity of suppliers to reduce lead times.
Buyers should reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.
Buyers should prioritize suppliers that are flexible with contract terms and conditions.
Buyers need to indicate the date when proposals are due.
Buyers should include a timeline of future deliveries.
Evaluate major factors to mitigate risk
How risky is the Propane supply chain?
The supply chain for propane presents a moderate level of supply chain risk. Propane vendors primarily rely on oil drilling and gas extraction firms, pipeline transportation firms and truck wholesalers. Due to the highly commoditized nature of propane, there is a considerable risk of significant spikes and dips in price... Subscribe to learn more.