JEFFERSON CITY – Senator Mike Parson (R-Bolivar) is asking Missouri Attorney General Chris Koster to investigate the steep increase in the price of propane gas this week.  “When naturally occurring events such as storms and hurricanes happen, gas stations are prohibited from raising their prices to unreasonable levels,” said Parson.  “This is a supply and logistical shortage brought on by the industry itself.  They should not be allowed to collect excess profits from their customers due to a situation of their own making.”

In less than 24 hours this week, the price of propane rose $1.25 at the wholesale level to $3.55 per gallon.  While the cold weather was certainly a factor, it is clear that mismanagement by the industry for months in advance has contributed to most of the price increase.  According the U.S. Energy Information Administration, between September and October of 2013, exports of propane from the United States rose by 73,000 barrels a day.  That level of exports so close to winter almost guaranteed a domestic shortage.  If the exported propane was sold to other countries at a lower price and now our domestic customers are being charged more, that is a travesty beyond words.  What makes the situation worse is the forecast in the coming week for extremely cold temperatures. 

Some suppliers are saying that even with the higher prices, the propane simply isn’t available to buy. Some in the industry are attempting to blame the wet corn harvest in North Dakota and Minnesota for the current crisis.  While propane is the primary fuel used to dry corn prior to storage, there should be no way a small market in one or two states would be able to cause a nationwide shortage.