Skip to comments.Propane shortage becomes an emergency
Posted on 01/27/2014 2:55:40 AM PST by Red in Blue PA
As brutal cold continues to blast much of the nation, a propane shortage is driving up heating bills, prompting accusations of price gouging and leading to energy emergencies in more than a dozen states.
"They're worried they might not be able to keep those chickens warm," said Jeff Helms of the Alabama Farmers Federation.
And consumers are grousing about higher prices.
"It looks like there's some price gouging going on," said Phillip Wallace, director of schools in Stewart County, Tenn., which were closed Thursday and Friday because they were short on propane for heating classrooms. The district was due to receive 2,000 gallons. But Wallace complained the propane cost $3.45 a gallon, up from $1.29.
(Excerpt) Read more at mcall.com ...
I REALLY don’t need this news right now
Our whole house generator runs on propane, but barring any extended outages, it doesn’t use much. If it does go out though, the bill will be a heck of a sticker shock.
Uuuuunh! Doesn’t propane slow down turning to gas at 0 or colder?
Went to a relative’s house for Christmas diner one year. Down to 10 degrees. Propane wouldn’t flow to the oven so we had ham sandwiches instead of turkey
I got a $3.49 quote in December, that seemed high but I had no choice, so I ordered it. By the time they delivered the bastards charged me $3.99 This is the last year I am going to be held hostage, I am going to buy my own tanks.
I'm in SW Pa and the last two weeks have been closer to 0 and below than not and the only thing I saw was a slightly smaller flame (I use propane for my cook stove ... 100 gallons lasts ... well ... my last fill was Oct. 2010 )
I own mine, but I'm calling the fuel company when they open in a couple of hours.
I'm not so concerned about propane as I am about home heating oil.
How much will they cost?
I have about 6 acres of woods...
Its not GD price gouging, its the market.
There’s no such thing as price gouging.
Agree. Back during the period after Hurricane Sandy, some gas stations were charging $6.00 per gallon. Some called that gouging.
But with so few trucks getting through with gas, that is a price which the market came to which necessarily kept people from hoarding if they did not need it. High prices serve a purpose during times like that and I saw it first-hand.
Not sure. But I have to pay $90 a year for “tank rental” right now, so whatever they cost is worth it.
We just ordered propane here in east central Indiana. They quoted a price of $6.25! The receptionist said they were not getting their usual supplies; a shortage. Our vendor is limiting each delivery to 200 gallons. Thankfully this is for heating our workshop and not our home.
I believe it freezes at -58F.
I’m not saying it is happening in this case but intentionally causing shortages to push up prices is gouging. It’s the reason we don’t like monopolies.
What high prices accomplish is ensuring that the wealthy get what they want while the do without regardless of need. That’s why left wing elites like high gas prices.
I meant to include the word poor.
During the Fukushima nuclear accident in Japan, Potassium Iodide tablets which normally sell for $10 were selling for $300 on Ebay. People in places like Kansas were buying them when there was no need. Once again, high prices ensured that only those who needed them most ought them. Why keep the price artificially low so that paranoid people who live nowhere near a nuclear plant can hoard them? That is insane.
Good move.....but the companies are so busy delivering propane you might have to wait a while....
then you still have to buy propane to fill the tank.
If you don't have a contract with a delivery company ...you will be at the bottom of the list as priority goes to those with annual contracts.
It gets a lot colder than 10 degrees here and I use propane with no problem.
The main reason propane prices are going up is because of exports of natural gas to Europe and Asia.
Interesting - all these articles the last few months about how we are now producing more Natural Gas than ever in this country, and yet there is a propane shortage. HMMMM.
There's a real credible opinion on the free market.
Be that as it may, how is does a real shortage of natural gas materialize in the U.S., these days? There really can't be such a shortage.
So the problem is more likely to be one of distribution, and temporary. Better minds can help clear this up for the class, I hope, with regard to Tennessee, especially. Initially, it seems similar to the lack of protection against pipes bursting due to protracted sub-zero weather throughout the sunbelt. It's cost is greater than repairs and replacement, which occur only when such weather arrives to stay for a longer period of time, every five to fifteen years. A windfall for sheetrock tape and bedders and plumbers, not to mention meth labs.
I have to do more research on fittings and how to get my propane out of the rented tank.
What high prices accomplish is ensuring that new supplies are created to make future prices as low as possible.
The high prices of Propane are intended to cause people to switch to the never ending supply of natural gas.
The temporary pain of ‘14 will be a lost memory to the sweet inexpensiveness of ‘15
(can you believe that it is actually ‘14)
Ordered 100 gallons back in November and it was around $2.40 gallon. The cold and ice in December caused me to use way more than usual so I just recently ordered another 100 gallons and it was delivered at $3.72.
I have always in the current house I’m in gotten through a winter with around 200 gallons but this winter my burn rate is up about 50%. And, in the last several years we’ve had some of the coldest, harshest winters of the last quarter century but this one is costing the most.
It’s hard to think of any monopolies that exist without the assistance of government. Think IBM. The history of Free Markets is driving prices down, and protecting consumers.
The history of Government is driving prices up. Think Keystone pipeline, limiting fracking, Ethanol.
Price gouging is a Socialist rationalization for price controls.
Huh? Propane is not natural gas. For most wells, the more natural gas that's produced, the MORE propane you get. When natural gas supplies are so large that it can be exported, the supply of propane goes up, not down.
You’re Hank Hill, aren’t you.
The only reason people use propane is because there is not a natural gas line running in front of their house. Propane is more expensive. If you live in town, you use natural gas. If you live outside of town and there is no natural gas line, you have to use propane, or electricity which is more expensive than propane.
Propane will not freeze at temperatures possible for local ambinent conditions.
It will stop boil off (producing gas) below -44°F. It will slow down as temperatures approach that point. As the propane in the tank is used, it boils off more gas. The boil lowers the temperature so the propane in the tank will be colder than the outside temperatures.
Yes, as long as people are free to respond. Regulation, zoning, licensing, patents, and copyrights are all designed to interfere with the natural market.
The Hill, you say?
Propane is a byproduct, not a product.
Propane is cracked into propylene used for polypropylene(plastic). Ethane into polyethylene(plastic). Butane into Butadiene(synthetic rubber).
Propane is produced by cracking naptha which comes from oil. Propane is also produced by separating it from natural gas.
BTW, if you are paying $95/year tank rental, you are getting screwed.
To save money, you can use your kitchen range to partially heat your house. That is direct fired and 100% efficient. But that makes your windows fog up and raises the CO2 in your air. And you have to be careful that no carbon monoxide is being produced because that will kill you. Make sure the flame is blue with only a small amount of yellow at the tip of the flame.
I don’t think that will work this year. I have heard where contracts are not being honored. Propane here went from $2.25 to $4.00 in 3 days. Our supplier only delivering 100 gallons to those under 20 percent in their tank. He was getting one load in this weekend. I read about pipelines being shut down and drying the corn crop as the culprits.
I thought we had a glut of natural gas, which is from where propane is derived. Why would we have a propane shortage?
You can purchase a tank from another supplier...they will transfer the gas to the new tank....in many cases....they will give an equivalent tank to your old supplier and you get to own the original one....this saves them the cost of removing and replacing the old tank with a new one.
>>Agree. Back during the period after Hurricane Sandy, some gas stations were charging $6.00 per gallon. Some called that gouging.
Same after Katrina. We were traveling to the FL panhandle immediately post-Katrina. We were glad to pay for gas at that price level. It isn’t gouging unless there is a monopoly.
>>Youre Hank Hill, arent you.
No, Hank Hill is Hank Hill!
Who ya got?
I get mine from Shelby.
I’ve no idea the price yet.
I thought FRACKING had VASTLY increased ‘supply’!!!
Where do you think that TSC gets IT’s gas from?
Economics drives Everything; eventually.
We use gasoline in most all vehicles, then diesel (which is almost identical to fuel oil) then CNG/propane then electric.
I’d like to see a chart of the cost per BTU of each type of fuel:
They also bite your fannie if the price goes DOWN!
Then it's called Price Fixing: which is, I believe, illegal in many places.
We do it every winter for our little rental cabin. We keep it at 55 during the winter months.