The price of oil dependence
May 1, 2004 By LP Gas
The little gasoline pump icon on my dashboard lit up again as I pulled off the highway en route to work one morning last week.
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The little gasoline pump icon on my dashboard lit up again as I pulled off the highway en route to work one morning last week.
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Wicked winter weather and supply chain bottlenecks in the Northeast have again focused attention on the ability of propane’s infrastructure to promptly deliver the product. As tankers waited in long lines, restrictions on hours of service for truck drivers presented added difficulties despite extensions granted by government authorities.
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I hope you’ll agree that one of the most exciting aspects of our industry involves the commodity side of the business and its unpredictability of both disruptions in supply distribution and wholesale propane price spikes.
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The numbers don’t lie; neither do the voices of frightened and frustrated propane marketers everywhere who say the mounting cost of doing business is smothering them.
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Propane prices, like most energy commodities, continue to experience extreme volatility. There are a number of factors impacting propane prices during the year.
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Propane price spikes in two of the last three winters had unhappy constituents from the 4.6 million propane-dependent households chewing the ears of their Congressional representatives for help.
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Propane marketers are looking for solutions to their supply, logistic and risk management problems based on this past winter’s experience and what their suppliers offer.
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