I live in northeast Ct. and have been burning pellets for several years. I generally use 5 tons, give or take, per heating season. I'll buy 2 tons in late summer/early fall, then 2 tons in early December, and my last ton in Feburary. I do it this way because I don't have a lot of inside storage. Surprise, no pellets in February, seems to be a shortage. From then on, hard to find, stores are rationing( never heard of this before), shipments are sucked up in hours. I called my 3 local big box stores last Friday and unbelievably got the exact same story from each, we got a 22 ton shipment in yesterday and sold them in 4 hours! I know the heating season has been colder than normal, but really gives? I am currently out and can't justify driving out of my way for 5 bags. Does anyone have a real explanation for what happened this year? This has been a lesson learned for me and I will guarantee I won't be caught short next season!
What really happened?
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This hasn't happened since 2008. Then I think it was a combination of very high oil prices and a cold winter driving up pellet usage. Now it's a very cold winter that is causing people to use more pellets than ever. I have used over a ton more than usual. The only reason I'm not scrambling for pellets is because I started the season with the most I've ever kept in my large basement, 5 tons. If you do not have the means to store pellets, there's not much you can do. I would buy as early as possible in the spring/summer and store as much as possible. It is a pain for me since I have no garage and have to get the pellets from the front of our house to the bulkhead in the back and re-stack on the basement. I could store probably 20 tons in the basement, but I would never want to unload and stack that many!
kennyp2339
Minister of Fire
Also many more people have a little extra $$ and invested in a pellet stove to fight off the higher oil prices, demand was larger than the supply, I feel bad for the pellet stove owners who ran out of stock and couldn't get anymore and if they did they were charged higher prices for the same product.
RKBAGUY
Feeling the Heat
At least now some of us can appreciate what fuel vendors go through when trying to decide how much to buy in anticipation of resale. Bring in too much product (be it oil, propane, whatever...) and you're stuck with it sitting around tying up your working capital and profits which you use to feed your family and pay taxes. Bring in too little and run out, and customers complain about your lack of foresight, then when you try to be fair about it by rationing or raise the price to discourage the hoarders who really don't need it, and you're the bad guy. Seems like a no-win situation to me. Not a business that I'd want to be in.
I'm glad I have the option of multi fuel. Most stoves will burn a blend of half pellets and half grain but it takes planning. Back when I started corn was cheap - cheaper then pellets and if I raise my own I have a ready supply every fall. Since then pellets became cheaper so I switched. But discovered a blend of corn and some pellets burned the best for me. I suspect this shortage will make pellet prices go up as people will panic buy. On the other hand if pellets go up and corn is cheaper a lot of people will switch back to corn which should help make pellets more available.
Looking at heating costs I read that the major supplier for LP to Minn is switching from delivering to Minn to a different destination which will cause LP price to jump here. Without competition you can be sure nat gas will also jump up in price.
Looking at heating costs I read that the major supplier for LP to Minn is switching from delivering to Minn to a different destination which will cause LP price to jump here. Without competition you can be sure nat gas will also jump up in price.
We just installed a pellet stove this Feb. And bought a 1/2 ton of pellets to get us going. The supplier that I got the 1/2 ton from is out of stock until next week sometime. I tried two different places yesterday and both had pellets but wouldn't sell me any because they were only selling pellets to their customers that had bought stoves from them. While I understand they want to keep their customers happy, I also think its B.S.. I only wanted 4 or 5 bags to get me through the next week, not a whole ton.( They had 3 ton sitting there). What they don't realize is we are looking into a pellet boiler which they sell, but I will not be buying there now.
I did find a supplier that even though he is out of pellets to sell at the store, he gave me four bags of his pellets from home. I will be giving him a lot more business in the future!
We will definitely be buying 5 ton in the spring/early summer.
I did find a supplier that even though he is out of pellets to sell at the store, he gave me four bags of his pellets from home. I will be giving him a lot more business in the future!
We will definitely be buying 5 ton in the spring/early summer.
Sounds like a logical explanation. Didn't realize so many new stoves were sold. I just hope pellets will still be a more economical means to heat. The thieves that control big oil probably don't like to hear this.
Bioburner
Moderator
The weather forecaster gave some details on how much colder the weather was at least where he was about 160 miles south east of me. October thru February the winter was below normal with February being 12 degrees below normal. That much swing below our normal is really ugly and March has not been very nice either.
I paid 219 for mine this year. 210 is good. However we have no sales tax in NH so that may be off set
RKS130
Minister of Fire
Also note that a lot of the pellet production here is shipped to Europe. There were some new plants built in the last couple years that the entire output was slated just for EU sales. Making pellets is a very energy hungry endeavor. So shipping to somewhere at twice the return per ton only makes sense on the bottom line to any corporation.
Luv2burnPellets
Member
Maine doesn't charge a sales tax on Pellets! Everything else is taxed, though ( except food ).
BigJohnfromCT
Feeling the Heat
$275 per ton for Hamer's plus delivery. I know I can get cheaper pellets but I like the heat from Hamer's and the low ash. I'd like to try some Okanagans but can't find them locally.
I'm thinking it might be that way in Wisconsin, I'll have to ask. They don't tax propane if you are a resident of the state but weekenders from out of state get hit with the sales tax on LPG deliveries.
Bioburner
Moderator
MN no tax on home heating fuels though some stores ask to file exemption, Fleet Farm, but automatic with horse bedding pellets?
I might add that the propane prices, at least here in the midwest, jumped from $1.70/gal to $4.85/gal a few months ago. That caused many people who heat soley with propane to buy a pellet stove.
Propane has just now come down to around $2.20/gal but suspect we will never see $1.70 again. Hum, this senerio sounds familiar like in gasoline prices a few years ago...surely not?
Propane has just now come down to around $2.20/gal but suspect we will never see $1.70 again. Hum, this senerio sounds familiar like in gasoline prices a few years ago...surely not?
Lots of new stoves sold this year because of the propane shortage and high oil prices. My dealer bags his own pellets and had 18 rail cars caught in bad weather in Canada… he had a 10 bag limit just a month ago.
Bioburner
Moderator
Prices down to $2.20 or so around here but if that's the low what's the average high for the next heating season as the supply issue has still not been addressed. This state needs cheap heating fuel to keep get the corn dry and the pigs and turkeys warm. If no cheap fuel your thanksgiving turkey is going to double in price. Pigs are already in stratosphere because of PED.
TimfromMA
Minister of Fire
Bioburner
Moderator
But somehow the crude was still getting shipped. The Castleton derailment was a big delay. Another member from your area had counted 6 engines pulling a string of new tankers.
Bioburner
Moderator
Minnesota asked the farmers to let their suppliers take back the unused propain and redistribute. All that has to be replaced. I drive by a three rail tankers storage site everyday and they haven't been replenished yet. I have to renew several permits and local taxes are due. The next month is going to suck the wallet big time and hope fuel prices can moderate. Picked up a new pair of insulated coveralls on sale so the warm weather is going to happen now
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