In the last week, prices for propane have more than tripled. At last check, prices were more than $5 a gallon. For families trying to heat their homes, this is simply not feasible. Many businesses and farmers are facing the same struggles, making difficult decisions on where they will optimize their propane and how they will be able to afford to keep up their tanks.

In December 2013, the cost of propane was approximately $1.94 per gallon.  Prices began to jump this month for residential propane from $2.25 (1/6) to $2.43 (1/20) to nearly $4.00 (1/27), according to the U.S. Energy Information Administration.  Now some local distributors are charging nearly $5.00 a gallon (some users have been told it could go as high as $7.50), requiring Missourians to shell out $2,500 to fill a 500-gallon tank when they are used to allocating $1,000 out of their budget to replenish their propane supply.

However, the blame should not be laid on our local distributors.  They are caught in the battle of increased prices between the consumers and the wholesale manufacturers.  It’s those at the top who have seemingly created low reserves that have resulted in a dramatic increase in propane prices for those who live in our state.

The late harvest last year coupled with unusually wet weather, which resulted in farmers harvesting their crops to utilize a significantly higher than average amount of propane to fuel grain dryers, standby generators and other farm equipment.  In addition, we’ve had a historically cold winter, bringing some of the coldest temperatures to our area and increasing the demand for propane for consumers to heat their homes.  And a major pipeline from Canada that delivers propane to the Midwest and Eastern regions was shut down for maintenance for nearly a month, making a prime source of propane for the Midwest unavailable during the peak season for our local distributors in the industry. 

In addition, our country exported twice as much propane in 2013 as it did the previous year.  How can such a widely depended on commodity originating in this country and distributed at record levels worldwide be in short demand for the people who need it the most here at home?

To help answer these and other questions, the Senate recently called upon our Attorney General to investigate these recent propane gas price hikes.  Since this request, he has opened an investigation into the cause of the increase in prices and to look into the 40 consumer complaints filed with the Consumer Protection Division about the surge.  And just this week, the Senate conducted a hearing on a resolution that urges the U.S. Department of Justice to investigate the price increase of propane, the price disparity of propane among storage facilities, and the supply shortage of propane available to consumers.  Congressman Jason Smith has also called on the Federal Trade Commission to investigate the issue.

Many Missourians are feeling the financial burden.  We need answers to our questions and right the wrong that has been done to our state’s citizens, many of which right now have to choose between heating their homes and putting food on their tables.