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Propane Prices Spike Amid Shortage

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The temperatures seem to get lower and lower and for those heating their home or business with propane, they've already noticed, the cost is getting higher and higher.


During a typical winter Joe Halbritter will deliver as much propane as a tank can hold, this year, that's not the case. A propane shortage means customers can only get a limited amount.    


“It's the highest I have ever seen,” said Nancy Head of Agri-Energy in Montrose.


Propane jumped to over $4.00 a gallon in late January. Last year, it was $1.50.


“They can't pay to fill a 500 gallon tank,” said Head.


Filling a 500 gallon tank would cost upwards of $2,000.


Prices have dropped since then but the 300 gallons of gas going to heat a home will still cost upwards of a thousand dollars. 


Agri-Energy has taken steps to make sure all of their customers can still get their product.


“It was allocated at the pipeline, so we in turn had to allocate it to our customers in amounts that would keep them going. But, we still had some gas for everyone,” added Head.


While the gas company recently purchased a new shipment from Yankton, weeks ago they almost had to travel much further.


“We didn't know where our next load of gas was coming from. There was gas in Texas but it was a matter of getting it here,” said Head.


Across most of America there are two problems people can complain about, the cold, and propane prices. In the Upper Midwest, until things start to warm up, expect to pay plenty to fill a propane tank.

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