Des Moines, Iowa – Despite the brutal cold weather and a sharp increase in demand from farmers and homeowners, liquid propane prices are -not- bounding in Iowa, according to Paul Ovrom, an ag marketer at the Iowa Department of Agriculture.
While two pennies a gallon is a very small rise, he says it’s typical to see price spikes during the wintertime.
Propane prices are up substantially from a year ago, about 27-percent higher. Ovrom says several factors may be coming into play. Ovrum says L-P prices often bounce between October and March as that’s when much of the product is exported to nations like China.
Even with the cold weather, he does not expect the record demand Iowa saw in 2013 when then-Governor Terry Branstad declared an energy emergency as propane prices averaged as high as $4.71 a gallon.