propane prices

[rmac]

Accodring to this report: http://tonto.eia.doe.gov/oog/info/twip/twip_propane.html

In the central atlantic states:

This week last year the wholesale price of LP was 1.70/gal and consumers were paying 2.85/gal.. (1.6 x wholesale)

This year wholsale LP is 83 cents/gal and consumers are paying 2.89/gal... (3.5 times wholesale)..

Am I missing something here, or does this sound like price gouging?

BTW, I can't even get the average price, my supplier just got me for 3.52/gallon.

 

[PaulRicklefs]

I know they are priced high. After conversion we are paying about $2.30/gallon or about .64c a litre. Wholesale cost is much lower of course. Price of oil dropped by 2/3 and the price of propane dropped 30 cents a gallon. Yeah math doesn't work out. I guess my company is hoping nobody notices.

 

[fueldude]

It is because the companies purchased their winter supply in the late spring/ summer/early fall when oil/propane was still higher and their contracts state they must take delivery. So while wholesale prices are currently low, most companies (because who thought it would nose dive) purchased their gas at $1.50-$1.70 range and are stuck with taking delivery of that gas versus the now cheaper gas. It sucks as much for the company as it does the consumer.

 

[rmac]

It is because the companies purchased their winter supply in the late spring/ summer/early fall when oil/propane was still higher and their contracts state they must take delivery. So while wholesale prices are currently low, most companies (because who thought it would nose dive) purchased their gas at $1.50-$1.70 range and are stuck with taking delivery of that gas versus the now cheaper gas. It sucks as much for the company as it does the consumer.

Could be, but why isn't the same true for home heating oil, and how come I am paying 110% more for propane than someone in Nebraska? They must be stuck with summer prices as well. Imagine the uproar if gasoline or home heating oil was $1.50 in the midwest, and $3.50 in the east.

 

[TomB]

Just paid $1.99 per gallon/delivered by Rockford, IL. My office just paid $2.49gallon/delivered near Elgin, IL. Two different suppliers delivering the same week. Last year I contracted 1200 gallons for home and 800 gallons for the office. This year I am burning wood hoping to use only 600 gallons for the year. (Fingers and toes crossed as the temperature falls...) Just my 2cents.

 

[Redox]

Is it me, or are the propane companies just the most fickle and arbitrary companies out there? It's not like they are advertising their prices for comparison or anything. Someone ought'a start holding their feet to the fire!

Chris

 

[geka]

Just paid $1.83 per gal in the Adirondacks NY for our second home.