Propane Prices Up by Almost 300%

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Thunder Bay – LIVING – With energy costs continuing to rise as the winter season approaches, the Canadian Propane Association (CPA) is calling on federal, provincial, and territorial governments to work together in providing support to Canadians facing higher energy costs.

Propane, which is usually produced as a by-product or derivative of natural gas, has jumped in price over the past three months.

Prices in Edmonton are up by 296 per cent to US$1.40 per gallon from roughly US$0.25 per gallon, according to ATB Capital Markets.

The rising price is going to impact many Northern Ontario communities and rural homeowners who heat with propane.

“At a time when Canadians are trying to get their lives back to normal and with COVID-19 continuing to be a significant challenge, the last thing they need is the additional burden of sky-high energy bills,” say Nancy Borden, Chair of the Canadian Propane Association. “The federal, provincial and territorial governments need to work together to provide relief against increasing energy prices.”

“There is plenty of propane supply in Canada to meet customers’ needs. Canadians can be assured that propane will be delivered to their homes and businesses, hospitals, and other institutions that depend on propane for their energy requirements,” states the CPA.

The pressure on price is a world phenomenon. Canada, as a participant in the global marketplace, is not immune to movements in world prices.

The increasing upward pressure on global energy prices has resulted in an increase in the price of such fuels as oil, gasoline, diesel and natural gas, in addition to propane, within Canada’s own marketplace.

The challenge for Canadians is in dealing with the high costs of energy that many will likely be facing this winter.

While all Canadians will be affected by higher prices, those living in rural areas are particularly exposed, given their dependence on fuel heating for their homes, farms, businesses and for transportation. Low-income Canadians and those on fixed incomes, such as seniors, will also need support.

“The federal government has a leadership role to play in helping Canadians offset the increased costs for energy,” said Borden. “It must turn its attention to developing policies and programs in conjunction with provinces and territories that will offer relief to Canadians from high energy costs. This could be done through such actions as introducing or enhancing home energy rebates, particularly for lower carbon fuels such as propane.”

To help Canadians prepare for winter and help reduce energy costs, the CPA has developed the following fact sheet: CPA Winter Preparedness for Propane Users.