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Propane prices rise as supplies run short

With more cold weather ahead and some delays in delivery,

homeowners should check proprane levels

 

propane tank

            As the second cold snap this year hit north Georgia this week, customers seeking to fill their propane tanks were faced with higher prices and a cap on how much they could buy from many distributors.

            Calls to area propane suppliers Friday morning showed prices ranging from $2.89 to $3.59 per gallon and one propane company representative said prices went “up 10 times in one week”.

            None of the six companies contacted Friday morning were taking new customers in an effort to ensure they could supply existing clients. Many were rationing deliveries to 100 or 150 gallons, down from a standard minimum delivery of 250 gallons, to make sure everyone who calls could get enough fuel to last through the bitter cold.

 

 

            Folger Gas is limiting customers to 150 gallons and Gas Incorporated deliveries are capped at 100 gallons. A Woodstock Gas representative said they have limited the amount they will deliver in order to see people through this cold snap and then fill them up completely later when supplies increase.

            “It’s been so cold up north that they’re trying to get gas there which is making a shortage here,” said Buffy Holcomb of Wigley Propane. “We are just servicing current customers right now. Everybody’s in a little bit of a panic. Everybody has used a lot more gas than normal this year.”

With the northern part of the United States in a deep freeze that doesn’t look like it will let up before spring, propane has become a hot commodity this winter.  Alabama’s governor last night issued a State of Emergency over the propane shortage. To help with the supply and demand of propane gas, the State of Emergency will lift federal transportation motor carrier laws and allow greater flexibility in the delivery to schools and businesses.

Although U.S propane production has grown thanks to the shale oil and gas boom in recent years, but because of the higher supply, domestic prices sank to below global levels, which has encouraged exports of the fuel from the U.S. Gulf Coast to Japan and other Asian countries.

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