Propane Prices

mickey · January 28, 2014, 04:20:55 PM

Last month we purchased propane for our office at 2.19 per gallon...This morning it was just under 5 bucks

I don't know how anyone will survive this....

bigG · January 28, 2014, 04:38:05 PM

Big hit. Come on over if you want to warm up in the wood emporium.

Not funny, though. Unreal jump.

Todd · January 28, 2014, 04:50:47 PM

Quote from: mickey on January 28, 2014, 04:20:55 PM
Last month we purchased propane for our office at 2.19 per gallon...This morning it was just under 5 bucks I don't know how anyone will survive this....

It's the capitalist way.

maggie · January 28, 2014, 06:08:13 PM

Mick....just dropped 40%from what you farmer buddy said...what a difference an hr can make....

Handles II · January 28, 2014, 06:10:58 PM

Our county just sent out a message about price gouging and companies breaking price contracts, and who to contact if it has happened to you.

littleguy301 · January 28, 2014, 10:53:01 PM

I called on Monday morning and my propane company was a little strange though I asked to make sure to top mine off because that was part of the contract I signed with you on that 100 degree day back in July.

They did but I wonder what is going on.

mickey · January 29, 2014, 02:06:35 PM

Milton Propane has been on the news claiming that they can't get enough gas and they've been "rationing" their customers to 250 gallons at a time. I buy from Ferrell gas and last month I paid 2.19 and I'm supposed to be "locked in" but we'll see. My big old salt box took me for a little over 2500 last winter and I never give the wood burner a rest unless we're gone for the weekend. I've already used over 2k of propane this winter. Heck if I had a crystal ball I would have installed one of those outdoor furnaces last summer!

bigoil · January 29, 2014, 10:06:12 PM

Quote from: maggie on January 28, 2014, 06:08:13 PM
Mick....just dropped 40%from what you farmer buddy said...what a difference an hr can make....

A) that was Conway, KS not WI
B) Conway was up 40% today.

This is going to get worse.

littleguy301 · January 29, 2014, 10:47:07 PM

Quote from: howavi on January 29, 2014, 10:06:12 PM
Quote from: maggie on January 28, 2014, 06:08:13 PM
Mick....just dropped 40%from what you farmer buddy said...what a difference an hr can make....

A) that was Conway, KS not WI
B) Conway was up 40% today.

This is going to get worse.

Thanks for making me feel broke!!!!!!!!

Now I suppose there will be a couple of outages at the refinaries to help out with the pocket book.

aarons23 · January 29, 2014, 10:56:50 PM

Howavi ....how high you think it will go?

We are burning wood 24/7 right now.....wished we would have started sooner.....I'm at 20%

bigoil · January 29, 2014, 11:23:09 PM

Quote from: aarons23 on January 29, 2014, 10:56:50 PM
Howavi ....how high you think it will go?

We are burning would 24/7 right now.....wished we would have started sooner.....I'm at 20%

I can hope this is almost over but I'll tell you when it is over when they fill my tank up, that will also be the high price

.

I think the govt is going to limit the price.

Mt belvieu TD is around $1.5 and KS is $3-$4, those are the two hubs. Trucking is the same as in my business because they hold the same amount on a truck, I could truck it from KS for 20 cents, 45 from tx.

The pipe tariff to Janesville is about 5 cents.

When wholesale gasoline went to $4.50 and retailers charged $5.00, there were gauging accusations, this makes that look like Sunday school.

aarons23 · January 30, 2014, 05:19:53 PM

My propane guy said it was $4.60 yesterday...but fell to $4.00..... We took 300 gallons. He said he thinks it's going back up tomorrow ...but with all the wood we are burning I think we will be good till end of March.

Handles II · January 31, 2014, 02:03:59 PM

Reports are the railroads and tankers are all being used in ND for oil, so there isn't a way to transport propane, so the cost gets jacked up. Though in this case there isn't a low supply, just the delivery service is slow so raising the price is the logical thing to do?

bigoil · January 31, 2014, 02:42:20 PM

Quote from: Handles II on January 31, 2014, 02:03:59 PM
Reports are the railroads and tankers are all being used in ND for oil, so there isn't a way to transport propane, so the cost gets jacked up. Though in this case there isn't a low supply, just the delivery service is slow so raising the price is the logical thing to do?

False, rail cars for propane are pressurized, different cars than the crude cars and certainly nothing the same as the truck tankers.

The issue is the A) the cold, B) Fall drying season, C) Propane exports and the combination of the three resulting in not replacing storage quickly enough.

Handles II · February 01, 2014, 09:15:22 PM

Apparently the news report was wrong.

"A letter from the National Propane Gas Association stated a variety of reasons for the propane shortage and resulting price hike. The NPGA cited a late grain harvest and excess drying of grain, the polar vortex weather system and rail cars used for hauling crude oil from shale plays rather than propane."

And so was the National Propane Gas Association.

Thanks for the help in clearing up the media and NPGA lies Howavi.