LP Gas Shortages and High Prices Continue

Many producers are seeding tobacco greenhouses, and calling for propane to heat them.  That bill may come with a little sticker shock…in some cases double what producers paid last year.  Paul Sherman, air and energy programs director for NCFB explains:

“There is a shortage of propane at the local level. A lot of it stems from the cold weather here as well as the Midwest and the northeast. There has been a run on the amount of propane that has been used and it’s taxed the transportation system to get the propane from its source in the Gulf of Mexico and in the areas of Pennsylvania and Ohio to the end users. That has put a crunch on the supply on the local level. We are beginning to see rationing and an increased cost.”

When calling for a propane fill, Sherman says don’t expect a full tank:

“Most of the local distributors because of the supply issues have appeared to begin rationing their supply. They are trying to deliver what a customer needs and not much more. Getting your tank full is likely not going to happen and because of the price is maybe not the best idea.”

Sherman speculates as to when the supply could become more normal:

“It will likely continue until spring when the weather and temperatures come up and the pipelines are able to get enough supply out to build up the supplies at the local distributors. Its very weather dependent.”

A couple of weeks ago, the Dixie Hub in Apex went on ‘allocation’, Sherman explains the situation and speculates as to the duration of that status:

“I anticipate that will stick around until the weather breaks or somehow other supply issues help. I know they are moving tanker loads by ship where they can up into the northeast that will help that area and take some pressure off the hub in Apex. They are trying to serve their local customers; a lot of out of state folks are coming there to fill up their supply. The hub is really prioritizing their local customers.”

Energy and Air programs director for North Carolina Farm Bureau, Paul Sherman.




A native of the Texas Panhandle, Rhonda was born and raised on a cotton farm where she saw cotton farming evolve from ditch irrigation to center pivot irrigation and harvest trailers to modules. After graduating from Texas Tech University, she got her start in radio with KGNC News Talk 710 in Amarillo, Texas.