Superior Propane prices see another hike

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7.3 cpl spike for Superior Propane in effect

Propane prices have taken another jump for one company

Propane prices in P.E.I. have once spiked for one company, while prices have decreased for two other companies.

The Island Regulatory and Appeals commission approved price adjustments that came into effect on Saturday, March 1, 2014.

The announcement saw prices increase by 7.3 cpl for Superior Propane, but decrease by 2.5 cpl for Irving Energy Distribution and Marketing and

by 7.5 cpl for Kenmac Energy Inc.

The last price adjustment on Feb. 15 saw prices increase by 7.8 cents per litre for Irving Energy Distribution and Marketing and by 6.5 cents per litre for Kenmac Energy, while there was no change in price for Superior Propane.

Propane prices have skyrocketed in the past few months, with a shortage of propane in parts of Central Canada leaving suppliers scrambling to find extra fuel. While the Canadian Propane Association has said there is no supply shortage in Canada, statistics from the National Energy Board showed propane inventories were down nearly 30 per cent lower across the country than in the same month last year.

Superior Propane, told The Guardian in January, it expected prices would remain high for the next few months.

“Pricing is influenced by supply and demand factors in North America,’’ the company said in a statement. “The increase in pricing is caused by increased demand due to subzero temperatures and uncharacteristically heavy snowfall that delayed deliveries of propane. Traditionally, prices have softened in the spring when winter heating demand eases. Superior currently expects prices to ease at the end of April or early May.’’

 

Previous propane price adjustments in 2014

Feb. 1 - Prices increased by 9.3 cents per litre at Superior Propane, by 9.8 cents per litre at Irving Energy Distribution and Marketing and by 15.0 cents per litre at Kenmac Energy Inc.

Jan. 15 - Propane prices increased by 8.0 cents per litre for Superior Propane, Irving Energy Distribution and Marketing and Kenmac Energy Inc.

Jan. 1 - Propane prices increased by 3.7 cents per litre for Superior Propane, by 5.4 cents per litre for Irving Energy Distribution and Marketing and by 6.4 cents per litre for Kenmac Energy Inc.

 

The March 1 IRAC announcement also saw gas prices increase by 2.6 cents per litre, pushing pump prices to 138.5 to 139.7 cents per litre.

By comparison, the average gas price in Canada, according to Gasbuddy.com, is 131.2 cents per litre and rising. Diesel prices increased by 2.5 cents per litre.

Furnace and stove oil prices increased by 2.0 cents per litre.

IRAC’s next scheduled price adjustment will be on March 15, 2014.

 

Organizations: Superior Propane, Marketing and Kenmac Energy, Appeals commission Canadian Propane Association National Energy Board The Guardian

Geographic location: Canada, Kenmac, Central Canada North America

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Recent comments

  • Knows Better
    March 02, 2014 - 10:22

    Just to correct you "Waiting"......propane prices at Superior are up 105% in the last year......they are up 70% in the last 4 months. We switched our oil furnace to propane this winter and it now costs us $6000 per year instead of $3000 to heat our home. The good news is........it will speed up the arrival of natural gas to the Island and then we can all wave good-bye to the propane companies.

    • bwahaha
      March 02, 2014 - 12:04

      if you think that an undersea natural gas pipeline will be built to a tiny market of 140,000 people like PEI, then you must be stupider than Rob Ford

  • Waiting out there
    March 01, 2014 - 16:42

    Propane prices are up again. No small wonder really. The companies now see an opportunity to gouge us another way. Prices are up over 40% from last year. This is completely unheard of. Not enough people using propane to get any real opposition. We use propane because it is clean and a lot less expensive to store compared to furnace oil. We should be rewarded not punished for making a greener choice. Shame on IRAC for being duped so deeply. Not that they aren't duped every month. We should really investigate if there are rewards to the members for this behaviour of using a government regulator to steal from the people. It would be the only thing that makes sense since the rest is so incredulous.

    • billy
      March 02, 2014 - 11:07

      You obviously don't understand economics. If you have lots of supply for a product and not very much demand, then the price will go down. If there is not very much supply and lots of demand, then the price will go up. It's a very simple principle and has been that way for centuries.