Frequently Asked Questions (FAQs)

Why are propane prices different across the country?

Propane prices vary from region to region. The distance between consumers and the sources of supply is a major determinant of propane prices because of the transportation cost. Since most Canadian propane is produced in Alberta, but residential demand is mainly in Ontario, prices in Alberta are generally lower than in Ontario. Likewise, residents located close to a refinery or other sources of supply will likely experience lower prices than residents farther away. Locations with fewer customers may also experience higher prices as costs are distributed amongst fewer customers.

With propane prices at such high levels, should I switch to fuel oil or electric heat?

Essentially every fuel has experienced price increases this year. The decision to switch to another fuel is an individual decision and there is no guarantee on comparative future prices. Also, keep in mind that changing the energy source for a home's primary heating is a long-term decision.

Does the NEB regulate the exports of propane and butane?

Yes. Following an application from an exporter, the Board issues short-term export orders for up to one year for propane and butane. There are no restrictions on volumes, prices, destination, etc. After the export occurs, the exporter is required to file this and other information with the NEB.

The NEB also issues, pursuant to an application, long-term licences for greater than one year and up to 25 years. These applications for licences require either a written or oral public hearing.