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 Propane Shortage - State of Emergency, $5+ Gallon
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RichBusman
Advanced Member

453 Posts

Posted - 01/26/2014 :  07:56:21 AM  Show Profile  Reply with Quote
Since this likely would never be published in any of the school bus publications, figured I'd share some of the links on the national crisis affecting propane customers. I bet if this was a national issue with diesel or gasoline it would be promoted to the high hills.

Propane autogas has been marketed as having minimal price fluctuation... yikes, looks like that was quite the lie.

Propane Shortage Reaches Emergency Levels

http://www.latimes.com/nation/la-na-propane-shortage-20140126,0,2263871.story#axzz2rWHcFudD

Wisconsin State of Emergency

http://www.dailyunion.com/news/article_c5be64e0-869d-11e3-9674-001a4bcf6878.html

Soaring Prices Pinch Indiana's Propane Customers

http://www.indystar.com/story/news/2014/01/25/-soaring-prices-pinch-indianas-propane-customers/4905143/

Propane Is Scarce As Cold Spell Lifts Demand, Prices

http://online.wsj.com/news/articles/SB10001424052702304856504579341114274334886?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304856504579341114274334886.html

bwest
Administrator

United States
3820 Posts

Posted - 01/27/2014 :  09:46:10 AM  Show Profile  Reply with Quote
It was not a lie, Rich. Up to this point there have been minimal price fluctuations. This is only a blip in the over all picture of things. The market will get this figured out and the industry will be stronger for it & I doubt it will happen again (baring a large catastrophe). As I stated in a previous post, on the mechanic's forum, I booked the propane for both the school and my private use (home heat). By doing that we are paying $1.41 right now instead of five bucks. Will it go to a buck forty one again? I'm not sure, but it will be near the $2 mark in a few weeks and that I am sure of.
Nice try.

Bryan
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C2FAN
Senior Member

United States
114 Posts

Posted - 02/06/2014 :  12:34:20 PM  Show Profile  Reply with Quote
I think you are right Rich, this would definitely be national news if it were gasoline but only because everyone uses gasoline. As I look at alternative fuels objectively without bias, the only thing that worries me about Propane is the fact that it does need to be refined in order to be available for use in vehicles. Natural gas seems to be a more attractive fuel in that sense that you can take it right out of the ground and put it into a vehicle, however I don't know many districts that can afford the high price of a natural gas fueling setup. There are pros and cons to everything and unfortunately no silver bullet to this fuel debate we are all experiencing. I am staying with diesel for the time being.
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bwest
Administrator

United States
3820 Posts

Posted - 02/14/2014 :  09:47:32 AM  Show Profile  Reply with Quote
C2FAN, I am sorry but you are incorrect. Natural gas does have to be refined. As you all probably know I don't get a dime from any of these people but I do want the truth out there so people can make informed decisions. http://en.wikipedia.org/wiki/Natural-gas_processing

Bryan
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C2FAN
Senior Member

United States
114 Posts

Posted - 02/19/2014 :  10:04:52 AM  Show Profile  Reply with Quote
Thank you BWEST, I may have over simplified the process of CNG process but it does seem to be more a purification process rather than refinement. You still cannot look past the shortages of Propane that are affecting nearly the entire country right now. I have family members that are paying THOUSANDS of dollars more than normal to heat their homes via propane. Even the Wikipedia article on propane states that " The supply of propane cannot easily be adjusted to meet increased demand, because of the by-product nature of propane production." This would be a major red flag for me if I was considering implementing propane fuel on a large scale into my bus fleet. Propane is currently over $4 per gallon in many parts of the country.

http://en.wikipedia.org/wiki/Propane
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bwest
Administrator

United States
3820 Posts

Posted - 02/20/2014 :  08:12:24 AM  Show Profile  Reply with Quote
$3.50 here. But I just think it's going to be down by spring. I talked to my fuel truck driver and he says you can already book $2 propane for fall delivery. You really just have to know what to look for and how to do it. The one problem I have with propane is you can only receive your book gallons or take a pre-order delivery in the fall instead of all year.

Bryan
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