News
Propane shows high increase in cost
Tyler Ohmann
02/04/2014
Wintertime itself can be a difficult time in North Dakota, but paying for propane can be as difficult, especially these days when one considers that propane in recent days has more than doubled in cost since December.
COST
Propane customers of Cenex in Bottineau County were paying $1.99 per gallon in December, but in just four weeks, the cost has jumped up to $4.09.
Kevin Schroeder, general manager of Cenex, stated the increase cost of propane has to do with a number of issues.
“The U.S. exported 20 percent of the US production of propane in 2013. In previous years, they only exported five. The reason that was done was because the export market paid more than the domestic market. So it was a money issue,” Schroeder said. “And, in the previous year, corn came off especially dry. This year it was extremely wet. So, there was a lot of drying.”
Outside of exporting propane out of the country and a large amount of propane being used to dry corn, Schroeder added that cold temperatures have added to the increase cost of propane.
“We were also colder this year than we were the previous year,” Schroeder said. “And, it is not just here because it’s over a bigger area. There is snow right now in Florida. So, it calls for an increase in demand.”
While propane customers are trying to find ways to pay for propane, propane companies are working hard to find the cheapest price for propane.
SEN. O’CONNELL
Senator David O’Connell, D-Lansford, stated that he has been working with Governor Jack Dalrymple in an attempt to get the propane cost reduced.
“I’ve been working on it for about a week now,” O’Connell said. “While in the governor’s office last week I found out he is working with the governors from Kansas and Texas to try to get some of the cost down.
“Texas has propane I was told in the governor’s office that is a $1.55 and that the state has all kinds of it,” O’Connell said. “And, it is roughly a $1 a gallon for transportation cost and they haul 12,000 gallons at a time and costs about a $1 a gallon to get it up here.”
O’Connell also stated that he has been in contact with senators John Hoeven and Heidi Heitkamp and was told by Hoeven that he has staff working on finding an answer for the high cost of propane, while Heitkamp was making attempts to find more money for fuel assistance.
To understand the large demand for propane, O’Connell stated that on Jan. 30 around two billion gallons of propane was taken out of storage for use in the nation.
“The demand is high,” he said.
ASSISTANCE
Local individuals who are having trouble paying for propane are encouraged to call Bottineau County’s social services office at the courthouse to see if they qualify for fuel assistance.
As propane prices continue to stay high in the county, no one in the area is pleased about it.
“Not that I agree with it, but that is what it is,” Schroeder said.
Writer’s Note: The Bottineau Courant contacted the headquarters of Ferrellgas for comments on the propane issue and had to leave a message with the company. At the time of the Courant publishing date, Ferrellgas had not returned the paper’s request.