Has the average propane margin per gallon increased faster than heating oil margins and electricity price?
Yes. The national average of propane margin per gallon increased at a much higher rate than the margin on heating oil and the electricity price per kwh as shown in Table No. 2 below. During this 10 year period, the prices of propane and heating oil doubled while electricity price increased about 17 percent. The bad news is propane lost much of its traditional price advantage over electricity on a Btu basis in recent years. Did the propane industry gain residential market share? No. According to the MMI report, propane lost market share in all regions of the country except for New England, the Mid Atlantic and the Pacific Northwest. Most of the market share loss has been to electricity during a period when propane enjoyed a significant Btu price advantage. Which company spent the most on acquisitions? Ferrellgas, which spent over $1 billion the past 10 years mainly from its acquisitions of Blue Rhino and Thermogas. Traditional names gone; new names emerge. The industry’s traditional maj
