Propane Prices Forecasted to Spike Even Higher - Valley News Live - KVLY/KXJB - Fargo/Grand Forks

Propane Prices Forecasted to Spike Even Higher

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The weather is forcing many of us to crank up the heat in our homes. For some, that's burning a hole in our wallets.

The cost of propane is shooting up this year, 14 cents just overnight. The month ahead is expected to make matters even worse.

Gary Joachim handles propane sales at Petro Serve USA in Moorhead. He's been dealing with a headache this winter that's made of one-part supply and three-parts demand.

"We've never seen this kind of pricing in probably 20 years, where it's been this high," Joachim said. "It's not an easy thing to explain to customers why it's a dollar higher than it was a year ago."

Just in the last four days, Gary has had to buy propane for Petro Serve customers at a price of 50 cents higher than what's typical. He's already forced to sell it at twice the price of last year.
This headache began months ago, when our wet fall pushed farms and elevators to buy up propane to dry out corn.

"It was one of the biggest drying seasons throughout North Dakota, Minnesota, South Dakota, Iowa, Nebraska and a couple other states," Joachim said.

Before suppliers could stock back up, the cold hit and forced this propane shortage to go national. Eighteen states have now declared an energy emergency.

There's little relief ahead, Gary and his customers are about to be hit with the worst of it.

"It will probably be end of February to March before we see any drop at all," he said.

Your best advice is to think about buying your propane ahead in the summertime. Customers who choose that option will be locked into a fixed into a locked rate when the winter hits and prices will be forced upward.


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