The price of propane in the United States continues to rise, adding a new painful point to energy inflation.

The rapid rise in the price of propane in the United States, nearly double that of its raw material natural gas, is putting greater economic pressure on consumers who are already struggling with soaring prices of gasoline, diesel, and electricity. The soaring prices in the niche industry of household fuel, which has traditionally been isolated from international events, indicate that the chain reaction of the Iran war is affecting markets that were previously well-supplied. Iran's effective blockade of oil tanker passage through the Strait of Hormuz has disrupted the trade of propane and other natural gas by-products, forcing overseas buyers to seek alternative sources from the United States. Data shows that since the outbreak of war, propane prices at the Mont Belvieu hub in Texas have soared by about 20%, while natural gas prices have risen by only 11% during the same period. Normally, the warming weather in spring reduces the demand for heating, and the peak season for summer barbecues has not yet begun, so propane prices in the United States should have been falling. However, prices have risen against the trend this year. Distributors have now started passing on the higher costs to consumers. "The entire value chain will be affected," said Julian Renton, a natural gas liquids analyst at energy research firm East Daley Analytics. "If the supply disruption continues, more propane will be shipped for export. Once this export volume erodes the current record high inventory levels, the domestic propane market may face even greater upward pressure." Wood Mackenzie analyst Sweta Shivashwami further added that in addition to the continued growth in overseas demand, US propane prices are also influenced by the overall surge in the crude oil market. The East Coast and Midwest regions of the United States consume most of the propane nationwide, which is used for various purposes - from household furnaces and forklifts to giant metal towers for drying newly harvested grains. Despite the significant recent increase in propane prices due to the war, the supply of propane in the United States remains plentiful. In fact, in March 2025, the central and western regions were hit by historic snowstorms and polar vortices for several days, leading to a surge in heating demand. At that time, the price of propane was 17% higher than it is currently. Mike Stivala, CEO of Suburban Propane Partners LP, pointed out that the higher wholesale costs are gradually being passed on throughout the entire system. The company supplies approximately 400 million gallons of propane annually to about one million American customers. "Usually, this transmission is direct," Stivala emphasized in an interview. "If wholesale prices rise by 10 cents, retail prices will also increase by roughly the same amount. The retail market and pricing mechanisms for propane have always followed this rule, that cost changes are directly reflected in end prices."