Legislative Column for the Week of Jan. 20, 2014
Propane Shortage Calls for Action

As many of you may have already experienced, Missouri is in the midst of a propane shortage of a mysterious origin.  Prices are skyrocketing and supplies are apparently beginning to run short. Many of Missouri’s rural residents rely on propane for heating, cooking, and hot water.  In fact, for many residents, this is their sole source of energy. This problem will quickly become an issue for every Missourian due to consequences behind the scenes. I have been told that some distributors are only serving residential clients due to lack of supply. Of course, this is a good decision since this situation could be life-threatening in this cold weather.

 

The reason for the shortage is vague at best. Wet weather resulted in more propane being used in North Dakota and Minnesota to help dry the corn crops. Exports of propane to other countries have risen by 73,000 barrels per day between September and October of 2013. Other countries are paying less for their propane and we are left with a shortage; this is inexcusable.

  

I have been told by officials in the Department of Agriculture that Texas Gov. Rick Perry has ordered propane production to be ramped up and rules governing the transportation of propane be temporarily suspended so truckers can drive longer and with heavier loads. Similar efforts are underway here in Missouri. I would like to applaud the governor for allowing the Department of Public Safety to suspend the rules limiting drivers hours for propane truckers as they work to help alleviate the supply shortage.

Suppliers are saying that propane is in short supply, no matter the price. Some of my colleagues and I feel that this may be a controlled shortage simply to raise profits. After all, gasoline stations are prohibited from raising their prices during natural disasters. Propane sales should be included under this law designed to protect consumers when they depend on this product.

I would like to support my colleague Sen. Mike Parson who asked on Thursday that Attorney General Koster investigate the possibility of “price gouging” in this situation. My colleagues and I would like to find out what is at the root of this massive increase in propane prices. Hopefully, we can resolve this situation and prevent it from happening again in the future. If there is artificial inflation of prices, I would hope that swift enforcement action be taken.

I would point out that the local suppliers and retail merchants are not suspected to be at fault, but rather, the manufacturers of propane are be the focus of the proposed investigation.

Always feel free to contact me throughout the year with any comments, questions, or issues by calling my office at (573) 751-5713 or by visiting my website at www.senate.mo.gov/brown.

Thank you for reading this and for your participation in state government.