Propane Prices Up

Propane is available again but comes with a nasty surprise, a substantial increase in prices. The increases differ by supplier and region but range from 10 to 25%. Cereal producers who are just recovering from a CN strike that created a propane shortage are protesting the increase. The latter is seen as opportunistic due to the still limited quantity of the resource being distributed.

During the night of Thursday to Friday, all of the oil resources had recorded a rise in prices on the international markets, a jump which was reflected in the price at the pump, among others. Propane is in high demand across the continent. Some US states have even issued a state of emergency to facilitate the transportation of propane. The season is also difficult in many areas of the United States that have received heavy snowfall and rain, increasing the demand at this time of year. The sudden onset of cold weather has also boosted demand in the past few weeks.

When asked about the subject, the Association québécoise du propane (AQP) indicated that it would not comment on the question.

“The AQP is an association made up of competitors, we defend the global challenges of the industry and that stops there. In a perfectly competitive market like propane, the question of price is often a trade secret. It is not discussed within the association. The AQP therefore refrains from publicly discussing the price established for propane by its members. There is nothing more normal for an association like ours ”, explained Raymond Gouron, Director General of the AQP. “The issue of price is not part of our mandate as an association, it is an issue that belongs to propane vessels on an individual basis,” added the president.

The Journal de Montréal reported the words of the Minister of Agriculture, Marie-Claude Bibeau, who said that she understood the distress of the producers. “Farmers have had a very difficult year and I am sensitive to their situation and concerned that they should have access to inputs at a stable and reasonable price,” she said in a written statement. .

The Canadian Propane Association (CPA) says it is “concerned that it is extremely difficult to supply the required quantities of propane to farmers and all customers”.

According to the CPA, the “current situation could continue to worsen due to the unpredictable delivery of propane, particularly when winter demand is high and shorter trains are expected”.

“The CPA is seeking the support of the premiers of the provinces and territories of Canada as the propane industry now faces significant logistical challenges to ensure a return to normal in the supply chain,” said Nathalie St-Pierre, President and CEO of the CPA.