For Immediate Release: Jan. 28, 2014

Majority Floor Leader Expresses Concern Over Spike in Propane Prices
Cost Could Triple Last Winter's Totals


JEFFERSON CITY – The abrupt increase in the price of propane in the Show-Me State is prompting Missouri senators to speak out against the sudden spike. In less than 24 hours last week, the price of propane rose $1.25 at the wholesale level to $3.55 per gallon. Some suppliers are saying not only are the prices higher, the propane isn’t even available to buy. Majority Floor Leader Ron Richard, R-Joplin, said the challenges consumers are going to face over the next few months are something no one has seen before.

“Propane consumers, those who heat their homes and their businesses, won’t have the resources to pay for it, and cold weather continues to remain in the forecast,” said Richard. “This is an unprecedented time for consumers. They don’t know what to expect next, and we don’t have an answer for them, yet.”

According to the Missouri Propane Gas Association, there are a few possible reasons for the shortage of propane. The cold weather is one of the main challenges the consumers are facing. Also, a pipeline, which provided about 40 percent of the product used by Minnesota supplies, was shut down for repairs while a new pipeline moved propane from the central part of the country to new export terminals on the Gulf Coast.  Adding to the shortage, as the harvest season ended, a “polar vortex” rolled across the region causing the demand for heat to soar. The temperatures show no signs of warming up for a long periods of time in the coming weeks.

“While this may be a short-term problem, it has the potential to have long-term effects on our consumers,” said Senate Leader Tom Dempsey, R-St. Charles late last week.

Sen. Parson, R-Bolivar, last week asked the Attorney General Chris Koster to investigate the steep increase. The Attorney General has since announced an investigation on recent propane gas price hikes.

Minority Leader Jolie Justus, D-Kansas City, also expressed her support for Sen. Parson’s efforts to investigate the increase.

“I join with the other Senate leaders in their request to consider what options there are to help our consumers who are facing these recent challenges,” said Justus.

“We need to exhaust all resources until we can find relief for our Missouri consumers. I’m happy the Attorney General is looking into the matter.  I also applaud Sen. Parson for bringing attention to the dramatic increase burdening our hard-working Missourians, and I support his efforts to find relief,” said Richard.

Lauren Hieger, Senate Majority Caucus Communications Director
(573) 751-7266 — lauren.hieger@senate.mo.gov