Local Dealers Say
Seasonal Increases
Occur Annually
BY DOUGLAS WATSON
MANAGING EDITOR
The price of propane gas normally rises in the cold winter months, then declines in the warm summer months, local dealers say.
This supply-and-demand situation is familiar to customers, say the three propane gas retail businesses in Greeneville and the single propane gas wholesaler operating here.
Winter price rises in propane gas have occurred again this season, interviews indicated.
Those who rely on propane gas to heat their homes may be needing more of the fuel because of the recent extremely cold temperatures.
SUPPLIES REDUCED
It had appeared last fall that this region would have plenty of propane gas, according to Andy Redus, owner of Admiral Propane, which has retail offices here and in Johnson City.
However, he said the amount of propane gas being imported into the United States declined rapidly this fall, as much more propane was being sent to other countries where the prices were higher.
Redus said that diversion overseas in recent months has caused propane gas supplies to drop in this country, with a resulting rise in propane gas prices.
"It's a supply-and-demand situation. That's just America," Redus said.
Redus said a gallon of propane gas that his company was selling for $1.89 last summer is being sold for $2.79 this winter.
He added that much of the propane gas that comes to East Tennessee is shipped from Texas, traveling to this region either by pipeline or railroad car.
There has been such a demand for the gas being shipped here, Redus said, that tanker trucks, which can carry 2,500 gallons of gas, recently have had to wait in line for many hours to pick up the gas delivered by rail.
Because of the situation, he said, Tennessee Gov. Phil Bredesen recently lifted a state limit on how many hours propane-gas truck drivers may operate their trucks.
However, Redus said the regional demand for gas should not prevent any customers from getting propane within a few hours after ordering it, assuming they have paid their previous bills.
Redus said Admiral Propane has had to tighten its rules on extending credit to customers, because last winter it was left with many unpaid bills.
OTHER LOCAL DEALERS
The other propane gas retailers here are:
* Marsh LP Gas, at 251 Baileyton Road.
Chris Marsh, the company's president, said it has about 2,500 local customers and 4,000 other customers elsewhere in the region.
Marsh said his company's propane gas, which was selling for about $2 per gallon last summer, is now selling for $2.59 per gallon.
* Shaw LP Gas, which is owned by Heritage Propane, and has its office at 205 W. Bernard Ave.
Johnny Wilson, Shaw LP Gas's manager, said the company has about 3,400 customers here.
He said its per-gallon price currently is $3.05, while it was $2.09 per gallon last summer.
Greeneville's single wholesale propane gas dealer is
Mt. Pleasant Propane, Inc., which maintains a rail siding to receive propane shipments along Mt. Pleasant Road not far from the John Deere plant.
Brett Wilhoit is manager of Mt. Pleasant Propane.
He said the company receives propane gas shipped here in rail cars that can carry 30,000 gallons of gas, or by trucks, which can carry 9,000 to 10,000 gallons of propane.
