06:16 AM EST, 01/29/2025 (MT Newswires) -- U.S. propane prices have been higher so far this winter heating season than during the year-ago period due to colder weather in January and higher exports, the U.S. Energy Information Administration reported Tuesday, citing data from its State Heating Oil and Propane Program.

Prices have been higher despite relatively strong propane inventories going into the current heating season, the agency noted.

Wholesale propane spot prices at Month Belvieu, Texas, are at US$0.81/gallon on average, which is US$0.13/gallon higher than year-ago prices, the EIA said.

The U.S. exports more propane than it consumes, which means exports can affect wholesale propane prices. Higher exports reduce domestic supply, which boosts U.S. wholesale prices.

The U.S. is exporting record amounts of propane at 1.8 million barrels per day on average in 2024, up 9% from 2023 levels, according to the EIA.

U.S. retail propane prices typically follow wholesale prices and supply and demand dynamics. Propane prices usually rise during the winter on higher demand for winter heating, and propane inventories are drawn down.

U.S. retail propane prices have averaged US$2.51/gallon so far this winter heating season, up US$0.07 compared to the year-ago period, the EIA reported.