The backup in the propane supply in Iowa is not expected to end very quickly.
Iowa Agriculture Secretary Mike Naig says it continues to be a demand issue with farmers needing propane to dry crops and others needing it to heat their homes. “It’s not that there’s not enough propane in the country — it has to do with the logistics of getting it where it needs to go,” Naig says.
He says it doesn’t look like there will be a big change in the situation anytime soon. “The things that are going to help alleviate that are getting the harvest completed and warmer temperatures,” Naig says. “I don’t think we are going to see any of those two in the immediate future.”
Suppliers have had to send trucks long distances to get propane and Naig says that may show up in the price. “The price will rise to accommodate for transportation issues if there are any. We hear about some folks putting surcharges on — it’s logical — it needs to be reasonable. If a supplier is having to drive to Kansas to get the supply — they will have to pass some of that cost on to consumers,” according to Naig. “We will be watching that situation closely.”
He says they would take action if they see the price being raised just to take advantage of the delays in getting propane. Naig made his comments during a stop prior to leaving for Japan with the governor on a trade mission.
(Photo and story by Dennis Morrice, KLEM, Le Mars)