What Causes Price Spikes?

Mar 05, 2021


Propane Tank at Sunset

We've got your back.

In good old Midwestern fashion, February threw us a winter curve ball. Our nice and mild temperatures dropped drastically and had our furnaces running around the clock to catch up. Typically, winter brings a strain on propane supply as usage increases (that’s why we have you fill out your yearly contracts in the summer). What’s not so typical is for the entire United States to go through cold spells across the board. 

Propane is created as a byproduct of refining processes. With Texas’ electric failure, nearly 2/3 of refining capabilities were cut off in the state at the same time as demand was high around the nation. As any economics teacher worth their salt would tell you, when you have less supply and more demand, price goes up. In this case we saw an impressive 50 cent swing almost overnight.  

Your cooperative has so many options to keep you and and your family protected against these events. Keep up to date on our Facebook and Website pages to learn more this spring!


Feel free to reach out to Addison with any questions! (608) 479-1357?
 

Addison Arndt

Energy Specialist
 

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