Propane Prices Rising

By: Heather Sullivan/News Channel 7 | News Channel 7
Published: November 09, 2007

The cost of heating many homes in the Upstate is going up. Propane prices are rising, and could continue to rise throughout the winter, after a pipeline explosion last week that killed two people. We'll show you why prices are climbing and how you can save some money this winter in this Seven On Your Side Consumer Watch.

Frank Pace has been filling tanks of propane at his FGS Hardware store in Piedmont for years.

Said Pace, "It has already started going up." Pace says propane prices spiked $0.20 over the last week from about $2.55 a gallon to $2.75.

Said Pace, "Pricing I think hurts people more than anything."

Last week an explosion in the Dixie Pipeline in Mississippi killed two people and shut down the pipeline that delivers propane to southeastern states. Reacted Todd Kemp, Sheriff of Clarke County, Misssissippi, "It looks like a war zone. It's a terrible sight. I've been in Clark County, I've been doing this for 20 something years, and I've never seen a scene quite like this one in my life."

Upstate propane distributors, such as Midway Gas, Greer Gas, Suburban Gas, and AmeriGas tell us they've had to truck in their propane from storage tanks throughout the region or as far away as Hattiesburg, Mississippi and Tampa, Florida. They say the pipeline will be repaired next week but cannot pump full capacity until its considered safe after a series of tests. That, they say, could take all winter.

Said Pace, "If we've got a short supply of it, then its going to hurt everybody."

Propane prices usually rise in the winter when demand grows. But local distributors tell us a shortage could drive prices up anywhere from $0.20 to an extra dollar per gallon.

Reacted Jimmy Caine, who uses propane to heat his home, "I think it's going to hurt everybody, not just myself, especially people that rely on LP gas."

So how can you beat the rising prices? Dealers recommend filling up your tanks sooner than later.

Said Pace, "Go ahead and get your first supply at least filled."

Added Caine, "I think I'm going to load up after this and get another one."

The National Transportation Safety Board is investigating the pipeline explosion. No word yet on what caused it.