Propane - An Inexpensive Alternative Fuel |
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Propane prices are subject to a number of
influences, some common to all petroleum products, and others unique to propane. Because
propane is easily transported, it can serve many different markets, from fueling barbecue
grills to producing petrochemicals. The price of propane in these markets is influenced
by many factors, including the prices of competing fuels in each market; the distance
propane has to travel to reach a customer; and the volumes used by a customer.
Because of the way propane is produced (a byproduct of the petroleum and natural gas
refining process), it has historically followed the ups and downs of the market price
trends of gasoline and diesel. Over a 15-year average, propane prices have remained about
30% less expensive on a per gallon price basis than gasoline.
Fleet Fueling Infrastructure
Companies thinking about switching their fleet fuel of choice to propane have a unique
opportunity to lower both their emissions and their operating costs.
National, regional, and even local propane distributors offer skid-mounted propane fuel
pumps, which they can install for little or no up front cost. They take up about as much
space as a parking spot, and are equipped with all of the safety features you'd expect to
operate it without worry.
With infrastructure on-site, fleet managers may then qualify for a $.50 / gallon Federal
tax credit, offsetting part of the wholesale price their paying for the fuel. Some fleet
managers are fueling their vehicles today for under $2.00 a gallon, after factoring in
the Federal tax credit.
For more information about having propane fueling infrastructure installed at your
facility, call 800.59.ROUSH.
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