Rose Riccetti, public relations manager for the association, said increasing oil prices and high use by the plastics industry have also had an effect on propane prices. In February 1999 there was a surplus of propane that resulted in low prices. That spurred larger propane users to stock up while the cost was low. Riccetti said that, while there is a good surplus in the Southwest, there has been high use in the East. Some propane supplies have been diverted there, driving up prices nationwide, she said.
Propane is a liquid gas, which means it is in a liquid state when it is compressed.
The gas is refined from natural gas and petroleum. About 7.7 million homes nationwide use propane to heat and cook, Domenici said. In 1997, more than 88 million gallons of propane were sold in New Mexico. Propane tanks for home use are sold in sizes ranging from 120 gallons to 1,000 gallons. The propane association estimates that most homes that heat and cook with propane will use six to 12 gallons a day, depending on the size of the home.