Low temperatures drive up propane prices | SteamboatToday.com

Low temperatures drive up propane prices

Steamboat Today

— Low temperatures across the country are driving up prices for propane.

A late corn harvest in the Midwest, which uses propane heat to dry the crop, and severe winter weather are creating demand felt in other regions.

The prices of residential propane per gallon rose precipitously in late January in the Midwest region, drawing reserves from regions such as the Rocky Mountains.

Colorado Propane Gas Association Executive Director Baron Glassgow told The Denver Post that the region was served by the same points as the Midwest.

The price of residential propane per gallon Tuesday was $3.80 at Ferrellgas in Steamboat Springs.

Simon Bowman, of UGI Corp., wrote in an email that he couldn't comment on the price of propane at AmeriGas' location in Craig.

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Bowman listed three factors driving higher propane prices across the 2 million customers AmeriGas services nationwide: a 60 percent increase in wholesale prices, increased transportation costs and higher demand because of cold temperatures.

"We are currently rationing deliveries to customers in a select few service territories," he wrote.