Wholesale propane prices at the main U.S. natural gas liquids (NGL) hub have reached their highest level in more than seven years amid tight global supply and strong demand, according to the latest government figures.

Propane prices

The Energy Information Administration (EIA) said wholesale propane prices at Mont Belvieu, TX, increased to an average of $1.33/gal during the week ending Friday (Sept. 24), the highest weekly average since February 2014.

The spike in prices comes as U.S. propane exports have risen considerably since January, averaging 1.3 million b/d in the first half of 2021. This is up 100,000 b/d from the first half of 2020 despite relatively flat production and domestic consumption, EIA said.

Propane exports to Mexico averaged 110,000 b/d in June, making it the fourth...