Oil & propane dealers/distributors buy ahead based on last years sales/demand. If this winter is a lot colder than the last one, shortages happen just because someone down the supply line did not buy enough.
IF they buy too much then it sits in their storage tank and they tie up their funds until next season.
It is similar to demand for rock salt, calcium chloride and other ice melter products. If you get a bad winter like this one, everyone is out and you can not get enough. However, you do not want any left over on the first of March because it does not store too well over the summer. Any left over will sit in the warehouse for 9 months and tying up your money.
3 years ago, our propane supplier automatically filled tanks when they were down to 40%. Last year, the refill level went down to 25%-30%. This year, it is not refilled until you are down to 15%-20%.
Excellent explanation. It otally understand, as I’m re-stocking my garden center for spring. I HATE having too much stock on hand, tying up cashflow. :)