Propane prices (Warning- RANT)

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Bubba1235

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Good grief! The price gouging has gone crazy, one local distributor is quoting people $5.40 a gallon!!! Of course there is the great lie of "supply and demand" and its been cold but the feds say it simply isn't true and we have an ample supply and can easily meet demand.

More a case of, "We have you by the short and curlies and can twist them anytime we like"!
 
gm280

gm280

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Re: Propane prices (Warning- RANT)

Yes I heard the stories too about plenty of gas but can't get it shipped quick enough... It is always some reason isn't it. Too hot, too cold, too wet, too dry, there always seems to be some stupid reason!
 
JB

JB

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Re: Propane prices (Warning- RANT)

If your supplier owns your tank he can charge you whatever he wants. If you own the tank you can put it out for bids. I had that problem a few years back. I went from paying over $4 to $2.25, saving me enough to pay for the 200 gallon tank the first year. My current supplier guarantees me lowest price. :)
 
avenger79

avenger79

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Re: Propane prices (Warning- RANT)

yep prices are going up here as well. just had 200 gals delivered, luckily before the latest huge hike
 
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rbh

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Re: Propane prices (Warning- RANT)

If these prices do not get a natural gas distribution expansion happening, I do not know what will.
 
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rbh

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Re: Propane prices (Warning- RANT)

BTW, who uses wood as a back up or as the main and propane as back up?
 
bruceb58

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Re: Propane prices (Warning- RANT)

rbh said:
If these prices do not get a natural gas distribution expansion happening, I do not know what will.
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I am on Propane. Natural gas is available in the neighborhood 1/2 mile from my house. The natural gas company felt it wasn't worth the investment to bring the lines down the road and service our neighborhood. The price of propane actually has nothing to do with their decision since they have to price NG at the same price they offer it to all their current customers.
 
Fleetwin

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Re: Propane prices (Warning- RANT)

Not to apologize but facts.

Propane is a by-product of refining, NOT the natural resource (oil/gas, etc.)

The issues with propane are transportation. Midwest bad weather caused a lot of transportation issues. Low Supply=Higher Prices.......

Until we relax (EPA) the building of new refineries, the fluctuation in prices will continue.
 
bruceb58

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Re: Propane prices (Warning- RANT)

Bubba1235 said:
You (and your neighbors) could "almost" pay for the black iron pipe and lay it yourself.
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I would be willing to pay my share of the costs.

Similar issue was brought up when some of us wanted the county to extend sewer lines and 90% of my neighbor rejected that in our town meeting.

I can't even remember that last time I had to turn on my heater. Our high temps have been 70s and 80s since December. Will be interesting to see what our prices will be.
 
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Fleetwin

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Re: Propane prices (Warning- RANT)

Bubba1235 said:
Low Supply=Higher Prices.......

But there is nothing wrong with the supply. If you are willing to pay the stupid high costs they will bring all you want. No one around here claims there is no supply. Kind of hard for them to do that when you can drive by and see all the holding tanks and rail cars waiting to off load. What they ARE saying is they are being "forced" by their suppliers....
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Disagree. The supply WAS/IS limited. Again, not apologizing-just facts.

Nobody is sitting around figuring out ways to gouge you. The supplier pays what he/she pays and adds markup. Simple as that.

The supplier is not going to lose money. It happens everyday at your local gasoline station. Why do you think those prices vary? Supply and demand. Nothing new.

The propane supply has been fairly consistant until recent weather issues caused supply problems. Propane is moved by truck, for the most part. NOBODY wants a rail car full of it within 100 miles of their house. That's another issue.

Agreed, there may be "supply" sitting around but that supply may be "committed" to a certain customer at an agreed price. Of course they are going to HOLD that.

If you want to buy 5000 gallons in July, you can work out the same deals.

All of this is called "Free Market".

If you want the government to weigh in, you will get what they decide to give you at the price they decide.

Your choice.

This is VERY short lived. Prices will come back down as supply replenishes.
 
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bassman284

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JASinIL2006

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Re: Propane prices (Warning- RANT)

If anyone believes that prices of commodities like gasoline and propane are purely determined by principles of supply and demand, they are deluding themselves. I live in a university town and every weekend, especially weekends when there is likely to be extra cars in town (start of school, football games, etc.), the price of gas increases several cents. There is no shortage of supply. It clearly is an attempt to wring a few more dollars per fill up out of folks before the leave town.

Unless there is some shortage of supply diving up prices, either in production of propane or in the supply chain, how is the increased cost explained in terms of supply and demand. Is propane in short supply?
 
greenbush future

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Re: Propane prices (Warning- RANT)

Here in MI. there are suggesting that repairs at refining locations has put a big dent in what's even available. That and a colder than average winter, has the companies making quite a bit of extra $$ because they can charge more. But what company does major repairs on a propane refinery's in the dead of winter? I have natural gas so it doesn't effect me either way. And natural gas prices are at 10-20 year lows, it's just the extra cold weather we deal with. And down south it's electricity that get's monthly cost's all jacked up. Time to get off the grid if you care to control your own cost's.

Locking in before winter can be very effective way to keep cost's to a minimum too.
 
bruceb58

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Re: Propane prices (Warning- RANT)

JASinIL2006 said:
If anyone believes that prices of commodities like gasoline and propane are purely determined by principles of supply and demand, they are deluding themselves. I live in a university town and every weekend, especially weekends when there is likely to be extra cars in town (start of school, football games, etc.), the price of gas increases several cents. There is no shortage of supply. It clearly is an attempt to wring a few more dollars per fill up out of folks before the leave town.
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Uhhh...doesn't that mean there is more demand when more cars are in town?

JASinIL2006 said:
Unless there is some shortage of supply diving up prices, either in production of propane or in the supply chain, how is the increased cost explained in terms of supply and demand. Is propane in short supply?
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Yes, in certain regions hit by the extreme cold this winter, it's pretty low.
http://www.washingtonpost.com/blogs...pane-emergency-as-more-cold-weather-moves-in/
 
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avenger79

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Re: Propane prices (Warning- RANT)

Fleetwin said:
Disagree. This is VERY short lived. Prices will come back down as supply replenishes.
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I agree and am hoping I timed it (as in got lucky) just right to avoid any big spikes. I don't mind the norm flucuations but double or triple the money, that's gonna hurt.
 
JASinIL2006

JASinIL2006

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Re: Propane prices (Warning- RANT)

bruceb58 said:
Uhhh...doesn't that mean there is more demand when more cars are in town?[/url]
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I guess I was thinking that one of the general rules of supply and demand is that a new (higher) price is caused by an increased demand in the face of an unchanged (or constant) supply. Maybe that assumption isn't correct, but in the example I cited, there is no practical limit on supply. Nobody's running out of gas, there's just an opportunity to take advantage of a somewhat captive audience.

Yes, in certain regions hit by the extreme cold this winter, it's pretty low.
Midwest faces propane emergency as more cold weather moves in
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Well, that does look like a supply problem, which explains a price hike to some extent. I bought a boatload (no pun intended) of propane last winter when I was heating my garage to restore my boat. I'm glad I didn't have to deal with the current prices...
 
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