Letter to Edith Ramirez, Chairwoman Federal Trade Commission - Seeking FTC Review of Propane Price Spikes

Letter

Dear Chairwoman Ramirez:

The cost of propane is spiking dramatically across the Midwest, and particularly in the State of Missouri. I am writing to ask that the Federal Trade Commission conduct oversight of the propane market in the Midwest to ensure that price gouging and anti-competitive behaviors are not driving these price increases.

The spot price of propane at Conway, Kansas -- the main supply point for my district -- has recently increased far above the spot price at Mont Belvieu, Texas. While there are considerable supply and transportation issues that may be adding to this large price differential, many of the state and federal regulations causing it have now been waived. I would urge you to find out if opportunistic trading during a natural disaster is mostly to blame. Many of my constituents are reporting that their long-term propane supply contracts are being cancelled -- one hopes that these schools, fire departments, family farmers, and homeowners are not being put out in the cold so that market speculators can make a few extra dollars.

As such, I formally request that the Federal Trade Commission conduct oversight of the propane market in the Midwest to prevent possible anti-competitive behavior or illegal manipulation, and to ensure that any supply shortages are not created artificially. I look forward to hearing the results of this oversight.

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