Lowest Propane Price In The Past Three Years

Lowest Propane Price In The Past Three Years

More than 300 organizations representing users, retailers, customers, fleet managers, utilities and producers of alternative fuels, including natural gas and propane, are circulating a letter on Capitol Hill urging Congress to reinstate the 50-cent-per-gallon alternative fuels tax credit (AFTC).The National Propane Gas Association (NPGA) and Natural Gas Vehicles for America (NGV America) are working together to reinstate the AFTC, which benefits both industries. According to the letter, “Extending the AFTC promotes increased private-sector investment in infrastructure and equipment, which leads to more jobs and economic output. Renewal of the AFTC also will bring significant environmental benefits and enhance our energy independence by lowering our dependence on foreign oil.” The letter asks Congress to extend the AFTC for two years, highlighting the business planning benefits and notes that a full five-year extension would provide business certainty combined with a significant contribution to America’s economic growth. Nearly 200,000 vehicles in the United States are powered by propane, including 12,000 school buses that transport more than 700,000 school children every day, according to NPGA and NVG America. This year, the United States will produce more than 20 billion gallons of propane, the majority of which is derived from natural gas processing,” says Rick Roldan, president and CEO of NPGA. “We have more than enough propane to heat homes and fuel vehicles. Congress should support reinstating the AFTC and the use of our domestic natural resources.”

Propane inventory through out the country is at a 3 year low right now. This has not so much to do with weather or more demand, but with propane exports which are at an all-time high. Going into this winter we were all fearful of propane prices skyrocketing like in 2014. This did not happen, even with low inventory, because of the ramp up of local production in the mid- west with many oil wells coming back on line after a two-year shut down, due to low oil prices and intense regulation. The lifting of the regulations on the wells have made production of oil, natural gas and propane profitable again. This saved us this winter from huge price increases. Prices peaked in late November and have held steady since and should start to come back down as we get into spring. Our new building is starting to take shape and we should be moving in by June 1st. We invite all our customers to keep track of the project on our Facebook page. We also post some great and informative safety videos and other cool things going on in the propane industry. You can always find a copy of this newsletter on our website www.mcminnvillegas.com . Thanks for your business and stay warm.

Sincerely,

John Buller and sons

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