Indiana Among Half of Country Hit By Propane Shortage
Posted
Jordan Fouts-
A perfect storm of bad weather and reduced supply has led to the worst propane shortage in decades across half the U.S. Officials in 25 states from Minnesota to Maine have declared an energy emergency in order to expedite fuel shipments, relaxing rules that limited delivery hours for propane and heating oil. Indiana is no less hard hit by tight supply and increased prices, which have led local suppliers to ration their product and even encourage customers to use other heating sources when possible. “From what I’m hearing from the industry, the problem is pretty widespread. This area is just as vulnerable as all other areas,” Joseph Stump, president of Stumps LP Gas Inc. in Pierceton, said Wednesday. “We’re still able to get some supply, however, the pricing is going out the ceiling.” He said wholesale prices have jumped in the past few days by $1.25 a gallon above an already high price, and he’s been encouraging his 4,000 customers in the region to use their gas sparingly. “It will price itself out of reach,” he said. “We’ve been asking our customers to conserve, conserve, conserve as much as possible. Any usage that is not necessary, shut it off... if you have another heat source, use it.” Suppliers across the state have been allocating their fuel carefully for the past month, said Scot Imus, executive director of the Indiana Propane Gas Association. That may mean cutting off supply for recreational uses in order to focus on home heating. “If I’m a supplier and I serve a hardware store that sells propane for people grilling outside in winter, I’m probably not going to fill that tank anymore,” Imus said. And suppliers for residential customers may only fill about a third of a tank – 150 gallons – in order to give everyone a chance. “They have to cut customers off. They’re limiting deliveries so there’s more to go around,” he said. “I’ve talked to members who have been in the industry for 40 years, and this is the first time, by far, they’ve experienced anything like this.” He attributed the shortage to a “perfect storm” of factors: a record number of exports, since the export market for propane is more profitable, which hurt supply; a strong but wet harvest season, requiring more propane than usual to dry off crops; and an extremely cold winter, increasing demand. “Whether one of those three things on its own would put us in this situation is doubtful, but certainly the three things together,” he said. “If there’s any relief, it’s that higher prices will perhaps change the equation of exports.” Stump isn’t sure when customers can expect relief, but he doesn’t expect the situation to improve until better temperatures cause demand to go down. “I wish I knew,” he remarked. “All indications are, from our perspective, it will last up until we start getting warmer weather in spring.”
