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Propane Shortage Hits The Wallet


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#1 A.C.T. OFFLINE  

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Posted January 26, 2014 - 09:54 PM

With record setting low temps and propane at a record $5.10 a gallon makes me want spring. Now please!

 

Homeowners in the rural area (like me) are getting hit hard. But farmers are really suffering.

 

The Star Tribune reports that agriculture uses about 30 percent of Minnesota’s propane.

On Thursday, the U.S. Energy Information Administration said, “With the onset of severely cold weather over the past weeks, propane supplies in the Midwest are extremely tight.”

According to the Star Tribune, turkey producers are particularly concerned about the propane shortage. Minnesota is the nation’s leading turkey-producing state.

Minnesota Turkey Growers Association executive director, Steve Olson, told the Star Tribune fuel suppliers say there is about “five days of propane left. The big concern is availability.”

Olson said young turkeys require 90-degree heat, while full-sized birds need temperatures of 45 to 50 degrees. Olson said growers have not dialed down on the thermostat, but Olson says that’s ”going to be the last resort.”

The Star Tribune reports the hog and dairy industries are also concerned about the propane supplies.

“I’ve heard from folks who’ve been told by suppliers that they don’t know where their next load of propane is coming from,” said Minnesota Pork Producers Association executive director, David Preisler, to the Star Tribune.

Some producers have attempted to find alternate suppliers only to be told the suppliers are not taking new business.

According to Reuters, many suppliers are now rationing supplies.

Not only are the supplies running short, but prices have surged to record highs and that also could have some homeowners who heat with propane in for a shock.

 

Many can only get 100 gallons at a time, along with new delivery fees.

 

If only I would have did the $1.69 pre-buy last fall!untitled homer1.png


Edited by A.C.T., January 26, 2014 - 10:08 PM.

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#2 Talntedmrgreen OFFLINE  

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Posted January 26, 2014 - 09:57 PM

Ive heard some horror stories....we sit on a bulk of LP and Natural Gas here, but with export business and the cold snaps, we are short too.
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#3 toomanytoys84 ONLINE  

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Posted January 26, 2014 - 09:59 PM

Ive always thought propane heat was expensive but 5.10 a gallon thats freaking insane. Heating cost are a concern for everyone in the cooler winter states and a big concern for those in the subzero areas.

im ready for spring as well.

I paid 800 bucks to fill up my oil tanks, plus the wood(mostly free) im doing ok, but my wife is living there alone and the oil is getting used up.

Edited by toomanytoys84, January 26, 2014 - 10:01 PM.

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#4 Texas Deere and Horse OFFLINE  

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Posted January 26, 2014 - 10:00 PM

Talked to Mom & Dad in IN and they were told last week that they maybe only able to buy 1/2 tanks instead of filling up in the next few weeks and the price has ski rocketed!! Very hard on our retired folks on fixed incomes!!


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#5 trowel OFFLINE  

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Posted January 26, 2014 - 10:17 PM

Many told me propain was the way to go, i said :bs: 

As per usually expected the shortages begin and pricing skyrockets.

I see natural gas following very soon.


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#6 Texas Deere and Horse OFFLINE  

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Posted January 26, 2014 - 10:29 PM

We are total Electric here and I wish I had NG, but it's not offered where we live. The price of Electricity will up also as fuel prices go up, I think I saw where about 20% of electric power generated used CNG to make it. We have a CNG generating plant about 2 miles from the house.


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#7 trowel OFFLINE  

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Posted January 26, 2014 - 10:33 PM

My trailer in Jamestown was all electric, that was very nice, first for me and the prices were great, that was 8, almost 10 years ago.

My mother and Grandmother are on fixed income, it is not easy.


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#8 Nato77 ONLINE  

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Posted January 26, 2014 - 10:42 PM

We lucked out when we got our last fill (still was higher than last year) at $2.20/gal 2 weeks ago. All I can say is I will be coming up with another way to heat the house for next winter. Haven't decided but maybe solar electric, wood boiler or geothermal. I burn wood in the shop and wish I could in the house but the chimney was already taking out when we moved here.

 Just really getting sick of everything going up in price lately.


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#9 hamman ONLINE  

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Posted January 26, 2014 - 10:45 PM

We are on NG and were locked in at a great price last fall. I feel for those who have to use LPG. I was talking to a local business man this week who called and was told that thr price for LP went up to $3.85 per gallon this week. They were paying a price of $2.50 earlier. I thought that was outrageous because last summer it was selling for $1.49 a gallon around here. Now I think these guys tha have to use it are getting it at a bargain compared to the $5.10 a gallon you are having to pay for it in MN.. I hope it stabilizes for you soon or it gets warm sooner. I know that the state has waived hours that LP drivers can deliver LP in the Upper Penninsula of Michigan. 

I know that if we had to of stayed on LP I probably would of changed to a Heat Pump system for us here. Good systems can run the heatpump down to about 29* F with some good energy savings. Being on NG it wouldn't pay for us to put it in.

 

Stay warm and stay safe. I am praying for all of us that this cold snap that we haven't seen in over 10 years breaks soon.  Roger.


Edited by hamman, January 26, 2014 - 10:48 PM.

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#10 bhts OFFLINE  

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Posted January 26, 2014 - 11:12 PM

Been seeing this here also. Called my old gas supplier to tell them to pick up there tanks as we switched. They asked why and I asked there price $3.50 a gallon and I told them that was why new company a local ag company locked us in at $2.00 cheaper.

 

On reason for the shortage was the corn this year was so wet when harvested it took a lot of propane to dry it. That was what the ag place told me which I can belive since a lot of the fields were still green when harvested around here. 


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#11 Hammer OFFLINE  

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Posted January 26, 2014 - 11:24 PM

I've heard all kinds of stories as to why the price is up, including the corn crop, obama sent a bunch over seas and the cold winter snaps. Who knows, they may all be true or false. But they are rationing LP around here, some at 100 gallons to 200 gallons max. My best friend just had his ration of 150 gallons the other day and his company charged $6.35 a gallon. I am thankful I have 45% in my 1000 gallon tank which should last me through this spell. 


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#12 Nato77 ONLINE  

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Posted January 26, 2014 - 11:30 PM

 

I know that if we had to of stayed on LP I probably would of changed to a Heat Pump system for us here. Good systems can run the heatpump down to about 29* F with some good energy savings. Being on NG it wouldn't pay for us to put it in.

 

 

We just put central air in this summer and never thought we would need the heat pump system but now I wished we would've spent the extra $700 to have it.


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#13 Gtractor ONLINE  

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Posted January 27, 2014 - 12:51 AM

I smell a rat! 

An artificial shortage planned and brought on by less production equals much more profit per gallon.


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#14 Dieselcubmike OFFLINE  

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Posted January 27, 2014 - 01:24 AM

Its funny. I always see commercials about propane being available in large quantities. If that's true where is it all? I too sense something strange


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#15 IamSherwood OFFLINE  

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Posted January 27, 2014 - 01:26 AM

I smell a rat! 

An artificial shortage planned and brought on by less production equals much more profit per gallon.

 

The propane guys finally got a hold of the playbook from the

big oil companies.


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