Propane pricing- it’s not what you think

The message concerning a shortage of propane is slightly off. There is supply available, it is just expensive and often far away. According to The Propane Gas Association of New England, production of propane in the US remains the highest it has ever been. What customers are experiencing are the results of a strained transportation and infrastructure system that is masquerading as a propane shortage. Supply is plentiful in the Gulf Coast where exports continue at record levels.

An official with one trade group in the mid-west said a wet fall and a chilly winter have triggered a mini-meltdown in the propane industry. If cold temperatures extend into next month, temporary supply shortages may occur due to existing bottlenecks in delivery systems creating distribution problems extending across the Midwest and elsewhere. This could have a negative effect on people who rely on the fuel to heat their homes. Again, this is not because there isn’t any Propane, it’s just harder to distribute and the mid-west is feeling the bigger pinch.

Bourne’s feels secure with fuel supplies and serving propane customers, however, price remains a big issue and concerning as it continues to rise. Bourne’s is more aware than ever that there is a great need to keep an eye out for our customers and take every opportunity possible to keep fuel pricing down.

The Vermont Fuel Price Report is published each month. The data for the report is collected the first Monday of each Month. The average cost of propane in Vermont based on a 1000 gallons as of 1/6/14 was $3.386 our cash price at that time was $3.209 so we were in fact under the state average.

Propane prices have increased significantly since the first of January so our prices have risen accordingly.