Propane users seeing cost increase

As the region's temperatures once again dip toward the single digits, many are worrying about how much it will cost to stay warm.

A recent shortage in natural gas and spike in price for what is available began with the fall harvest, according to a news release from the Missouri Propane Gas Association. The region's grain harvest was a wet crop and required a great deal of propane to dry it before storage. That, mixed with infrastructure realignments and the "polar vortex," created a worst-case scenario for the current natural gas conditions that have many people's wallets feeling the heat.

The U.S. Department of Energy reported that recent cold weather led to record-high natural gas storage withdrawals, the largest in the 20-year history of the survey, and the second time this year the record has been broken, according to the release.

The price of propane nearly tripled last week at the Midwest supply and distribution hub in Conway, Kan., the Associated Press reported, and some in Southeast Missouri are feeling the effects.

Katelin Robinson of Jackson said in an email to the Southeast Missourian that she bought 300 gallons of liquefied petroleum [LP] gas in the beginning of December for $1.81 per gallon. By Jan. 12, Robinson needed more LP gas after the initial polar vortex blew through the area. She then purchased 200 gallons of gas at $2.32 per gallon.

"I could've bought a tank of gas for my car with the extra they charged," Robinson said in the email.

Betty Bridwell, east of Benton, Mo., in Scott County, said the most she had ever paid for propane, up until a few days ago, was $1.98 per gallon.

On Wednesday, Bridwell called the gas company she uses and was quoted $3.35 per gallon of propane. Bridwell chose to wait and call back the next day so she could check her finances and see where she could find the extra money needed to pay for the price increase.

When Bridwell called Thursday, she was quoted a price of $4.42 per gallon, and was told that price could not be guaranteed to be same once the truck delivered the propane.

Bridwell has since spent more than $800 and ordered 200 gallons of propane, which should last her about three to four months during the winter, depending on the temperature, she said.

She has yet to have the propane truck visit her home.

Until then, Bridwell said all they can do is hope their propane doesn't run out before the gas truck gets there.

According to the Energy Department, 5.5 million households in the U.S. heat with propane, most of those households being in the Midwest and South.

Bridwell questioned whether the price of propane, like the price of gasoline, will stay expensive, or it if will go back down to about $2 per gallon.

Missouri Sen. Mike Parson on Friday said companies are sending more propane overseas, leading to a shortage in the Midwest, which causes a rise in prices and gives profits to corporations, the Associated Press reported.

Parson sent a request for Attorney General Chris Koster to open an investigation on the matter, suspecting price gouging.

Koster announced in a news release sent Monday that after participating in a multistate conference call with representatives of the propane gas industry, his office is investigating the cause of the recent spike in propane cost.

"Distributors and analysts have pointed to a sharp increase in the export of propane and substantially higher consumption this winter, which may have created a corresponding shortfall in the supply of domestic propane," the release said.

U.S. Rep. Jason Smith on Monday asked for a Federal Trade Commission review of propane costs.

"Shortages in the supply of propane and the resulting cost spikes are causing a real hardship for families, farmers, rural schools districts, senior citizens on fixed incomes and small business owners in Missouri's Eighth District who rely on propane to heat their homes and businesses," Smith said in a news release. "I am asking the Federal Trade Commission to look at this situation to determine if the price increases are legitimate or if the increases are a result of market manipulation or gross mismanagement of reserves."

Messages left with three area propane gas providers were not returned as of Monday afternoon.

ashedd@semissourian.com

388-3632

Pertinent address:

Scott County, Mo.

Jackson, Mo.