IBISWorld’s Propane Procurement Research Report is a comprehensive guide to purchasing Propane. This report offers strategic analysis of the factors influencing purchasing decisions, including price trends and three-year forecasts, input costs and demand factors, along with key suppliers and an analysis of the extended supply chain. Armed with the right procurement intelligence, your company will be able to make educated purchasing decisions.
doneBenchmark Price
doneRFP/RFQ/Negotiation Questions
done3 Year Price Forecast
doneSupply Chain Analysis
doneSupplier Intelligence
doneSample Buyer Decision Scorecard

Propane - Recent Price Trend

In the three years to 2017, the price of propane has been falling rapidly at an estimated annualized rate of 15.8%. Demand for propane is largely driven by downstream activity in utilities, fuel, commercial and industrial markets. At the same time, external factors, such as uncommonly warm weather, can also cut into demand and prices.A number of external demand drivers shape the pricing...

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Propane - Total Cost of Ownership

The total cost of ownership for propane is significant, accounting for more than 100.0% of the benchmark purchase price per year. Although the total cost of ownership is considered high, buyers should note that it is lower than that of alternative fuels, such as natural gas. In addition to the base price of the propane, buyers are also liable for infrastructure support costs and operating costs...

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About this Report

This report is intended to assist buyers of propane, which is a colorless, odorless, nontoxic type of liquefied petroleum gas (LPG). This report covers three grades of the gas: HD5 propane, HD10 propane and commercial propane. The primary buyers of propane include firms in utilities, fuel, commercial, industrial and agricultural markets. Specifically, propane is used in furnaces, outdoor grills, air conditioners, fireplaces, irrigation pumps, water heaters and appliances, as well as propane-driven forklifts and some fleet vehicles. This report does not cover other gaseous fuels like butane, coal gas or methane.

Table of Contents

At a Glance

Executive Summary

Price Environment
 Price Fundamentals
  Benchmark Price
  Pricing Model
 Price Drivers
 Input Cost Drivers
 External Demand Drivers
 Recent Price Trend
 Price Forecast

Product Characteristics
 Product Life Cycle
 Total Cost of Ownership
 Product Specialization
 Related Goods
 Subsitute Goods
 Quality Control
Supply Chain & Vendors
 Supply Chain Dynamics
  Supply Chain Risk
  Geographic Locations
 Competitive Environment
  Market Share Concentration
  Vendor Company Types
 Market Profitability
 Switching Cost

Purchasing Process
 Buying Basics
 Buying Lead Time
  Selection Process
  Buying-Decision Scorecard
 Key RFP Elements

Negotiation Questions

Buyer Power Score Components

Jargon & Glossary

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