News

Propane prices rising, supplies tightening with increased farm use

A report by the federal Energy Information Administration says propane prices are going up while supplies drop in much of the Midwest. 

The report shows wholesale propane prices are climbing from a late October low near 60 cents a gallon to more than 90 cents a gallon.  Prices were falling during the same time period a year ago.  Midwestern consumer prices have risen to $1.67 a gallon, which is still lower than a year ago when prices were $1.80 a gallon.

The report also shows propane inventories dropping below-average levels, with increases in daily use.  Much of that increased use has been attributed to higher than normal consumption from farmers and grain handlers drying corn and soybeans.

Refineries and terminals in Iowa, Minnesota, and Wisconsin reported supplies of about 500-thousand gallons available compared to the five-year average of about 700-thousand gallons.  Illinois, Indiana, and Ohio inventories fell to around 1.3 million gallons compared to their two-million-gallon average.