Propane Shortage Means Increased Prices for Customers

3 years 10 months 3 weeks ago Tuesday, January 21 2014 Jan 21, 2014 Tuesday, January 21, 2014 10:00:00 AM CST January 21, 2014 in News
By: Andie Lowenstein, KOMU 8 Reporter
loading

COLUMBIA - Sub-zero temperatures mean propane is in high demand all across the Midwest and Northeast and suppliers are having a difficult time keeping up.

Propane supplies took a hit during the "Polar Vortex" winter storm causing prices to skyrocket.  More than 14 million American families use propane to fuel furnaces. According to the U.S. Energy Information Administration, national propane prices averaged $2.86 per gallon last week, up 17 percent from the same time last year. In Missouri, prices are up 32.8 percent this January as compared to last year.

According to the Missouri Propane Gas Association, the challenges in delivering propane for customers for the winter season started in October. Large amounts of corn and grain crops were being harvested throughout the Upper Midwest. Usually, the harvest progresses in stages through the region but in late 2013 the harvests happened simultaneously over a wide area. That was a large, wet crop which demanded massive amounts of propane in order to be dried for storage. That demand took a toll on propane inventories throughout the region.

Additionally, the Cochin pipeline, which provided 40 percent of the product used by suppliers in Minnesota, was shut down for repairs which pushed the suppliers further away to get their supply.

Propane terminals in the Midwest and some in the East are on allocation, which means they are provided with a certain amount of propane that they can buy each day. The high demand is pushing oil companies to look outside Missouri for additional propane.

"We're doing our best to keep our customers supplied with product, that's the most important thing right now," said Tom May, director of marketing at MFA Oil.  "We're also working with our associations to come up with plans to try and get more energy assistance funding released for the consumers that are out there that require energy assistance."

"We think this is almost like a one hundred year flood and a combination of things that has created a perfect storm to affect propane distributors and customers," said Steve Ahrens, executive director for the Missouri Propane Gas Association.

More News

Grid
List
COLUMBIA – Fire fighters arrived at the scene of a warehouse fire Monday morning. According to the Division Chief,... More >>
5 hours ago Monday, December 18 2017 Dec 18, 2017 Monday, December 18, 2017 3:12:00 AM CST December 18, 2017 in News
COLUMBIA - Power was restored to 1,922 Columbia customers, according to Columbia Water & Light. The outage affected customers... More >>
10 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 10:35:00 PM CST December 17, 2017 in News
CAPE GIRARDEAU (AP) — A Cape Girardeau man will likely spend the rest of his life in prison for shooting... More >>
12 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 8:00:30 PM CST December 17, 2017 in News
COLUMBIA - Three years after picking up a disc for the first time, Cynthia Riccotti is thriving in her quest... More >>
14 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 6:25:00 PM CST December 17, 2017 in News
TIPTON - A family is trying to recover after losing everything in a house fire, and with help from the... More >>
15 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 5:20:00 PM CST December 17, 2017 in News
BOONE COUNTY - A boil advisory is in affect for Water Supply District No. 10 in Boone County. According... More >>
15 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 5:18:00 PM CST December 17, 2017 in News
CAMDEN COUNTY - A Kansas City woman has been arrested in connection with a fatal car crash in Camden County... More >>
16 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 4:48:00 PM CST December 17, 2017 in News
KANSAS CITY (AP) — Area educators are opening up the topic of teen suicide for discussion after seeing deaths rise... More >>
16 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 4:07:00 PM CST December 17, 2017 in News
JEFFERSON CITY - The first ever "Christmas Countdown" Sunday is giving Jefferson City an opportunity for some last minute Christmas... More >>
23 hours ago Sunday, December 17 2017 Dec 17, 2017 Sunday, December 17, 2017 9:21:00 AM CST December 17, 2017 in News
COLUMBIA (AP) — Police say they have arrested a man charged in an August quadruple homicide that occurred in... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 11:15:00 PM CST December 16, 2017 in News
NEW BLOOMFIELD - A two-vehicle car wreck Saturday left one dead and two others injured, according to the Missouri State... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 8:15:00 PM CST December 16, 2017 in News
COLUMBIA - An event in Columbia today addressed the prevalence of gun violence and misuse of firearms by offering gift... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 8:04:00 PM CST December 16, 2017 in News
COLUMBIA – A six-year-old held a hot chocolate stand Saturday outside of a Hy-Vee in Jefferson City to help two... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 6:51:00 PM CST December 16, 2017 in News
COLUMBIA - The Wyss Medical Foundation donated $2 million to the Missouri Orthapaedic Institute for the work of lead orthopaedic... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 5:05:00 PM CST December 16, 2017 in News
COLUMBIA - On Friday, the Columbia Police Department inducted eight new recruits, the largest class of officers in years. ... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 4:03:00 PM CST December 16, 2017 in News
COLUMBIA – A new roundabout may be coming to Columbia on one intersection that may cause drivers trouble. The... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 3:55:00 PM CST December 16, 2017 in News
JACKSONVILLE - An estimated 400 people attended a wreath laying ceremony Saturday at the Jacksonville State Veterans Cemetery. It... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 3:31:00 PM CST December 16, 2017 in News
COLUMBIA – Graduation day is long awaited by many and Amy Kiso Bledsoe is no exception. Bledsoe was... More >>
1 day ago Saturday, December 16 2017 Dec 16, 2017 Saturday, December 16, 2017 2:47:00 PM CST December 16, 2017 in News
Columbia, MO
Broken Clouds 44°
9am 45°
10am 47°
11am 48°
12pm 50°

Select a station to view its upcoming schedule:

Coming Up Next

7:00a
Today
9:00a
Megyn Kelly TODAY
10:00a
Today with Kathie Lee & Hoda
8:00a
The Steve Wilkos Show
9:00a
The Steve Wilkos Show
10:00a
Jerry Springer

Tonight's Schedule

7:00p
The Voice
9:01p
Ellen's Game of Games
7:00p
Popstar's Best of 2017
8:00p
The Hollywood Walk of Fame Honors 2017
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld