Propane gas prices are on the rise for one simple reason… shortage! There is a shortage of propane gas across the nation. Michael from Webb Brothers in Tifton says the grain crops out west were extremely wet during the summer months. In order for them to dry them out, the equipment they used took more propane gas than expected, causing a shortage. Webb offers no difference in price, whether your tank belongs to them or is your own. Their current price is $4.10 a gallon. Before the recent rise of prices, it was $2.41 a gallon.
Courtney from Ferrell Gas in Tifton says the nation’s severe winter has contributed to the shortage. Pipe lines up north have been shut down because of the winter storm and there is no way to get the supply of propane gas to the businesses. Gas prices at Ferrell are $3.57 a gallon; over the last several weeks, it has ranged between $3.40 and $3.79 a gallon.
Locally, Conger LP gas, Inc doesn’t offer a special rate on the rental of their tanks. For the first year, if you use 300 gallons of gas in a year then your rent annually will be free; however, if you use less, the price will be $48 per year for the rental cost. Their current price is $3.49 a gallon. (According to consumers, the price last week was $3.18 per gallon.) Before the rise in prices, the average cost was $2.69 a gallon. Ginger at Conger LP Gas, Inc says they are able to run lower prices due to storage as they have more storage space than other providers at this time.
As for Webb Brothers in Sylvester, Sandy says the prices are basically up because of the shortage and she can’t predict if those prices will go back down. The current price there is $4.10 a gallon but was running $2.79 a gallon just a few weeks ago. To use their tank, expect an annual charge of $24 a year.
Some consumers question why gas prices are higher for people who rent their tanks from one of the companies, as opposed to owning their own. Cheryl from Conger LP Gas, Inc in Tifton says gas was $3.89 plus tax per gallon if you rented their tank, but only $3.79 per gallon if the tank is yours.
While natural gas occurs in nature as a mixture of methane and other gases, propane is actually a byproduct of both petroleum refining and natural gas processing. Natural gas must be cleaned before being used, and byproducts of this process include hydrocarbons like propane in addition to butane, ethane, and pentane. The difference between propane and natural gas in domestic use comes down to their energy efficiency, cost, compression, storage, and risk factors. There is very little difference except when it comes to the performances of appliances used for heating, cooking, or drying. Sylvester City Hall currently offers natural gas to city residents at a rate of $12.95 per metric cubic foot and there is a $7.00 basic fee per month and sales tax.
On Monday, Georgia Governor Nathan Deal and Agriculture Commissioner Gary Black signed an executive order prohibiting propane providers from price gouging. Deal said recent cold weather has led to a spike in the demand for propane which has translated to a substantial price increase in the past few days. Much of the state has been under a winter storm watch and some areas expected up to three inches of snow as another round of arctic weather moves into the region. Black says farmers of livestock, poultry and food processing companies depend on propane gas to continue business. Black and Deal are doing everything possible to work with the propane suppliers and agribusinesses to meet the challenges they are currently facing.
