A confluence of wet grain, broken pipeline, exports and prolonged extreme cold in the Midwest has burned through propane supplies, sending prices soaring and dealers scrambling to meet a record-breaking demand.

The average price in our region on Jan. 20 was $3.541 a gallon, up from 2.983 a year ago, and the highest it's been since January 1990, when the U.S. Energy Information Administration began tracking prices.Temperatures in our area sank to single digits Monday night, and are expected to plunge tonight, according to the National Weather Service. That means a lot of folks are going to fire up propane space heaters and furnaces.Good local supplyDon't panic, said Steve Ohl, president of R.F. Ohl Heating Fuel, Lehighton."We're fine. We're in good shape. We contract 95 percent of our gallons, so the supply is always there. There are four suppliers we buy propane from, so we can pull from different suppliers. We also have a 60,000 gallon storage tank on site, so we have enough to get us through," he said.However, Ohl said, the supply contract does not control price, which is market-driven."Costs are definitely up," he said.Other local propane dealers asked for comment said the Pennsylvania Propane Gas Association has asked dealers to refer media questions to it.Why the shortage?PPGA Executive Director Shelby Metzger referred to a prepared statement, in which the association contends there is plenty of propane, but problems with transportation and infrastructure are preventing it from getting to customers.The release says that more rail service has been diverted to shale transport, pipelines are in need of repair, and there is a dire need for more storage facilities."The propane supply in the United States remains the strongest it has been in recent memory. What Pennsylvania customers are feeling are the results of a strained transportation and infrastructure system that are masquerading as a propane shortage," the statement said.The National Propane Gas Association offered a more detailed view, saying the shortage stems from a confluence of events that began flowing together in October.The U.S. Department of Energy last week said the prolonged and extreme cold weather led to record-high natural gas and propane storage withdrawals."These are the largest drawdowns in the 20-year history of the survey, and the second time this year the record has been broken," NPGA said.A large, wet grain crop in the Upper Midwest required massive amounts of propane to dry before it could be stored, reducing supplies in that region.At about the same time, a Minnesota pipeline was shut down for repairs, setting off a chain reaction as suppliers had to go farther out to load their supplies. Canadian imports to the Northeast were hampered by rail rerouting, forcing Minnesota and Wisconsin gas retailers to get their propane at pipelines in Iowa, increasing demand in that state.As the harvest demand wound down, a massive winter storm wound up, pummeling the Midwest with arctic temperatures and forcing the demand for propane higher.And it's not over yet. More unusually frigid temperatures are on their way.Compounding the problem, the amount of propane exported to other countries has increased. Last year, more than 20 percent of the total United States propane was sent overseas, up from 5 percent in 2008, according to NPGA.Resolving the problemThe organization asked transportation officials to make shipping of propane a priority, so the U.S. Department of Transportation has eased its rules for how many hours commercial drivers can work at a stretch. The exemption, for 31 states including Pennsylvania, ends Feb. 11."In addition to seeking relief at the federal level, NPGA is working with officials within the pipeline, rail, and truck transport industries and asking for propane shipments to be prioritized within their industries," said NPGA spokeswoman Mollie O'Dell. "Our primary focus is to make sure that customers who rely on propane have the fuel they need as the colder temperatures continue."It's not just propane customers who are taking a hit: Fuel oil is also going up. As of Jan. 20, it was $3.792 a gallon, up from $3.774 a year ago. Last February, heating oil hit a high of $3.954 a gallon.