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An update on propane prices

by / Tuesday, 18 February 2014 / Published in News

Dear valued Burkardt’s LP Gas customer,

You have likely seen or heard recent news reports of propane shortages and price increases across the U.S. Several stories have noted propane prices in the Midwest exceeding $5 per gallon. Numerous factors have contributed to this situation including extreme cold throughout the nation resulting in record demand and propane pipelines being prevented from resupplying local terminals. Additionally, an increase in exports to other countries and weather-related transportation disruptions have also contributed to this unfortunate situation.

First of all, the United States is not running out of propane.  The production of propane has increased in the United States by nearly 20 percent over the last several years.  This is good for propane customers. However, propane exports have increased fivefold over the same period.  Unlike crude oil, propane exports are not regulated by the federal government.  This is an issue that the National Propane Gas Association, of which Burkardt’s LP Gas is a member, is working to rectify.  Something must be done to keep the abundant supply of propane in the U.S.!

Over the years, Burkardt’s LP Gas has worked diligently to provide propane at reasonable rates.  We strategically pre-purchase propane throughout the year to ensure adequate supply and stable pricing during the winter season.  While other companies have been charging in excess of $5 per gallon this winter, Burkardt’s pre-purchasing strategy has ensured our prices remained stable.  However, due to extreme winter demand, this supply of contracted propane has been depleted, and we are no longer able to provide propane at pre-purchased rates.  Effective February 15, 2014, prices will reflect the current market rate.

Burkardt’s will continue to monitor KEEP FULL customers and make deliveries as needed.  We will continue delivering on a rationed basis, hoping that prices will fall as the weather warms.  If you prefer to be removed from KEEP FULL status for the rest of the winter, call us, you will need to monitor the reading on your tank gauge and notify us when it reads between 20-25 percent. This will ensure you never experience an undesirable out-of-gas situation.

Rest assured that Burkardt’s LP Gas is doing everything in our control to ensure prices remain stable and that you experience the highest level of propane service during this difficult period.  The market is stabilizing and lower rates are expected as warmer weather approaches.  It doesn’t appear that this current situation will have a drastic effect on next heating season pricing.  We apologize for any inconvenience and thank you for your patience.  Please contact our office at (815) 946-3081 with any questions.

Sincerely,

The Burkardt’s LP Gas Family

 

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