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Boreal Community Media

Fuel experts predict price of propane to climb in coming months

Jul 08, 2020 07:49AM ● By Editor
Photo: CBS 3

By Lyanne Valdez from CBS 3 News Duluth - July 7, 2020

Fuel experts say now is the time to lock-in your propane prices for the winter.

Nicole Steinsberger from Duluth took the advice and locked-in her propane price and savings at 99 cents per unit until April.

"It's nice knowing that one of our bills got cut in half so we can put it towards other things," said Steinsberger.

President of Superior Fuel, Ryan Gunderson, said that kind of deal won't last.

Gunderson said the fuel industry saw the price of propane bottom out at the end of March due to COVID-19.

"All the states were shut down, businesses were shut down. We saw there was no demand for gasoline or diesel fuel so we saw crude oil plummeted," said Gunderson.

Now that states have reopened and are lifting restrictions, Gunderson said prices will begin climbing.

“The reason we are seeing it come up is with the low prices they are shutting in wells and stopping production, they’re not making propane now that we are using up whatever inventory there was we are seeing the prices double," said Gunderson.

Superior Fuel said we could see the market rate of propane go up at least three dollars or more this winter, so the best thing to do is to get on a pricing contract.

"That way you know exactly what you're paying, there's no surprises," said Gunderson.

To watch a video version of this report and see other articles, follow this link to the CBS 3 Duluth website.