(Area) The supply chain shortages are affecting just about everything these days, and propane is no exception. The cost of a gallon of propane is nearly triple compared to the last two years at this time.
Iowa State Extension Economist Chad Hart says the spike in propane prices is related to rising energy prices like natural gas, crude oil, and gas prices. He says a lot of it has to do with demand as consumers drive more following the COVID shutdowns. Hart blames the other reason for the shortage of propane on the icy weather last February in Texas.
Hart doesn’t expect the high cost of propane to come down anytime soon.
The farming industry is also feeling the pinch when it comes to fueling their machinery, not to mention the high price of anhydrous ammonia, partly due to the high cost of natural gas.
Hart says on top of that, transportation is an issue, and countries are shutting down shipments.
Hart says when COVID hit 18-months ago, the focus dealt with the effect on public health, but it also affected a lot of industries. Hart says as we begin to rebuild, all the pieces aren’t coming back into place as quickly as the country would like them to.
