Propane Gas is a naturally occurring gas at atmospheric pressure, and has many versatile uses and serves a lot of purposes. Propane Gas is used for heating purposes, cooking, fuel for vehicles, making petrochemicals, in fueling gas fireplaces, drying clothes and other purposes. Propane is actually a by-product of two processes, that is petroleum refining and natural gas processing. One factor associated with Propane gas being a by-product is that with the fluctuating supply and demand, the production of Propane gas cannot be adjusted.
The portability of Propane gas makes it very important and useful, and increases its demands in many markets. The fact that propane gas mostly stands in competition with crude oil-based fuels makes Propane gas prices susceptible to changes in crude oil cost. Other than these factors, propane gas prices also depend on factors like demand of other fuels in each market relative to the demand of Propane gas. The volume in which the gas is used is also an important factor in determining the price of the gas. As mentioned before, we know that the supply of propane gas cannot be adjusted to the fluctuating levels of demand. This makes the prices of the gas unstable.
The uses of propane gas vary widely in accordance with the customer, region and the season of the year. The use of propane gas in industries normally varies on the basis of the weather and also on the region in which the industry is located. The industry which uses the maximum amounts of propane gas is the petrochemical industry. Besides industrial use, there is a lot of propane gas usage in residences, mainly for purposes of heating and cooking. However, this use of propane gas highly varies with respect to the region and season. Propane gas is widely used as fuel in transportation and is considered to be the best alternative fuel. Another use of Propane gas is for farming purposes. It is used for weed control, fuel for irrigation pumps and crop drying. In some places the use of the gas is concentrated in certain areas while in others it is not very common.
There is always a high demand for propane gas by the residential sector, and the demand is seasonal. The supply and demand of Propane gas depends upon factors like domestic production of the gas and also the weather conditions. The demand of propane gas becomes very high when the weather is a colder than normal.
When considering fuel, there are some aspects due to which Propane Gas takes precedence above gasoline. If you use propane gas for transportation purposes, then you would be aware that propane enables you to travel a relatively greater distance and saves you the worry of refueling. Besides being cost-effective, it is good for both your engine and the environment. It increases engine efficiency. Now, people are becoming more and more aware about their environment. This is another reason why people have started switching from gasoline and there are many people who prefer Propane Gas as an alternative fuel.
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