Sometimes you just need to scream!!!

[Ship Wreck PE]

I filled up a 5 gallon grill tank last Friday 1-24-14 and it cost me $18.00 in Ga

 

[snickerd3]

^that's about what a grilling propan tak exchange costs around here in South-central IL

 

[NJmike PE]

http://www.njherald.com/story/24596704/2014/01/31/propane-shortages-prompt-states-to-act

 

[Road Guy]

Sounds like we need to get our frack on!

 

[NJmike PE]

^ THIS

 

[Capt Worley PE]

What exactly is the 'supply problem?' I've heard this ad infinitum, with no definition of what the problem is. Which always make me think something is afoot.

 

[NJmike PE]

in my opinion, it's the horsesh!t cover for, trying to squeeze more out of the consumer due to increased demand.

 

[MA_PE]

I filled up a 5 gallon grill tank last Friday 1-24-14 and it cost me $18.00 in Ga

We buy it by the lb. Filling a standard 20 lb. propane grill tank has been ~$20 forever. I haven't bought any since the end of the summer so I don't know if the cost has risen recently.

 

[mudpuppy]

What exactly is the 'supply problem?' I've heard this ad infinitum, with no definition of what the problem is. Which always make me think something is afoot.

The story they are spreading is:

(a) there was a record amount of grain harvested late last year (partially due to ethanol subsidies) and large amounts of propane were used for grain drying

(b) we've been shipping propane overseas (I assume this has to do with low prices due to fracking)

© super cold temperatures lately have driven up demand

 

[NJmike PE]

© super cold temperatures lately have driven up demand

I get (a) and (b) but regarding ©, it's not like the temps will remain this way for ever. It's unexpected and short-termed. By April, this will be an old story. And if that's their reasoning, then why not drastically lower prices during an extrememely mild winter, citing the same principal reasoning? :2cents: :dunno:

 

[Capt Worley PE]

What exactly is the 'supply problem?' I've heard this ad infinitum, with no definition of what the problem is. Which always make me think something is afoot.

The story they are spreading is:

(a) there was a record amount of grain harvested late last year (partially due to ethanol subsidies) and large amounts of propane were used for grain drying

(b) we've been shipping propane overseas (I assume this has to do with low prices due to fracking)

© super cold temperatures lately have driven up demand

Thanks.

Isn't propane somewhat of a beeyotch to ship overseas?

 

[engineergurl]

© super cold temperatures lately have driven up demand

I get (a) and (b) but regarding ©, it's not like the temps will remain this way for ever. It's unexpected and short-termed. By April, this will be an old story. And if that's their reasoning, then why not drastically lower prices during an extrememely mild winter, citing the same principal reasoning? :2cents: :dunno:

Because it is perfectly acceptable to have increased profit margins but if the profit is reduced... then the price goes up... during the mild winter with a low demand, they can't lower their prices because they need to make up for the profit they are loosing on unsold product... propane is not a product bought by "choice", but often necessity and the economics of it work differently than cabbage patch dolls

 

[NJmike PE]

Because it is perfectly acceptable to have increased profit margins but if the profit is reduced... then the price goes up... during the mild winter with a low demand, they can't lower their prices because they need to make up for the profit they are loosing on unsold product... propane is not a product bought by "choice", but often necessity and the economics of it work differently than cabbage patch dolls

deep down I knew that. It just seems that supply and demand never work in the favor of the consumer. Sucks

 

[Capt Worley PE]

Because it is perfectly acceptable to have increased profit margins but if the profit is reduced... then the price goes up... during the mild winter with a low demand, they can't lower their prices because they need to make up for the profit they are loosing on unsold product... propane is not a product bought by "choice", but often necessity and the economics of it work differently than cabbage patch dolls

deep down I knew that. It just seems that supply and demand never work in the favor of the consumer. Sucks

Well, their business counts on that, to some extent.

But it isn't a zero sum game; you do get something out of it, and if you didn't think it was worth it, you'd change to another heating source.

 

[NJmike PE]

unless I didn't have the funds available to support a system overhaul. Then I'm stuck right where I am to complain about the butt raping

 

[engineergurl]

Because it is perfectly acceptable to have increased profit margins but if the profit is reduced... then the price goes up... during the mild winter with a low demand, they can't lower their prices because they need to make up for the profit they are loosing on unsold product... propane is not a product bought by "choice", but often necessity and the economics of it work differently than cabbage patch dolls

deep down I knew that. It just seems that supply and demand never work in the favor of the consumer. Sucks

Well, their business counts on that, to some extent.

But it isn't a zero sum game; you do get something out of it, and if you didn't think it was worth it, you'd change to another heating source.

The supply and demand rules still apply, just not in the same direct manner... if the market was flooded with additional supply then the prices would eventually go down, but not immediately because the consumption of the product is cyclic to begin with... generally speaking, because the product can be stored at some point of it's use life, the supply can be controlled to prevent stores from becoming available keeping the price fairly steady... however in a situation like this, they dipped into the stores for some reason (probably not impacting any consumers) and then with the increased consumption of the winter, the lack of back up supply is what drove up the price. People are still getting the product if they want it... be thankful for that because if there was even less, the price would have grown even more

 

[Lumber Jim]

Being part of the manufacturing industry that supports the transportation of Propane, I can tell you that not every one is able to get it even though they want it. There is a shortage of trucks, trailers, and drivers available for moving the product. I believe that this is also contributing to the increased price by limiting the supply and is compounded by the wet grains harvested this year, and cold temperatures this winter. I can't speak to the export demand any further than to say that I believe it is increasing.

Typical lead time for new trucks (bobtails) and Transport trailers for this industry is a couple of months...

 

[engineergurl]

Being part of the manufacturing industry that supports the transportation of Propane, I can tell you that not every one is able to get it even though they want it.

Well there you go... the price will necessarily skyrocket

 

[Capt Worley PE]

"If you want your propane, you can keep your propane."

 

[engineergurl]

"If you want your propane, you can keep your propane."

yes you can, because a petition to deport Justin Bieber is on the docket next