The harsh winter and propane price spikes have caused hardship for many rural Iowa families who use propane to heat their homes. My office has received calls from worried consumers who have seen their bills go through the roof. Propane dealers are concerned about short supplies in their period of greatest demand.
It’s hard for the layperson to gain knowledge beyond the publicly cited factors for the propane supply shortage and price increases. The industry claims that the current situation is caused by certain conditions, including the significant demand for propane used to dry the large, wet corn harvest. In addition, the Midwest has experienced increased demand for propane due to the cold weather. Still, even knowing these conditions, it would require substantial analysis to learn whether the rapid, substantial price increases are justified.
The Federal Trade Commission exists to oversee fair business practices and to look out for consumers. I asked the commission to remain vigilant in overseeing the propane market to prevent any possible anti-competitive behavior or illegal manipulation and to ensure that any supply shortages are not created artificially. The current propane situation might be completely above-board, but in the event it isn’t, the Federal Trade Commission should be on the case.
In the meantime, anyone who might be eligible for federal heating assistance should contact the Iowa Bureau of Energy Assistance for more information.
