Propane Price Update: Rising Cost of Propane Nationwide
The recent record storms that have belted the northeast and southern part of our country have helped to contribute to the higher cost of propane in our southern California marketplace. Propane prices typically go up in the winter as demand increases, but the record storms have done even more damage to propane pricing. Our country has also exported a record amount of propane to Asia and other parts of the world, decreasing available supply and stressing the local supply.
All propane supply companies are being affected by the propane shortage. Mutual Propane has almost 400,000 gallons of propane storage capacity, along with very secure contracts with suppliers, since we have been in business here in southern California since 1933. So we are able to supply our customers while others cannot.
Another seldom seen problem that is becoming evident is a shortage of small propane tanks, the 20 pound cylinders that are widely used for barbeques and portable heaters outdoors. The demand for these cylinders has spiked because of Covid 19 orders requiring outdoor dining, along with homeowners buying patio heaters and fire pits to enrich their lives as they shelter at home. The supply has been affected by labor shortages due to Covid.
Bottom line, the price of propane along with the availability of propane cylinders will probably stay with us for a bit longer, until supply catches up with demand. Take heart, spring is coming and the 2021 winter chill will soon be a fading memory.