Propane rate increase due to higher demand and low inventories

Propane

The Tohono O’odham Utility Authority has approved an increase in the price per gallon rate for Propane. The new rate will go into effect on April 1, 2023, at a rate of $4.00 per gallon for all customers, which is an increase of $1.00 over the current rate. This increase is the result of the increase in the wholesale cost of propane, along with the increases in delivery costs, which is the result of inflation and an increase in Diesel fuel for delivery trucks. The wholesale price of propane has increased due to higher demand and low inventories.

TOUA’s wholesale purchase cost of propane has increased by $1.25/gallon since 2018, with the highest increase occurring in 2022. TOUA has absorbed the increases that occurred prior to 2022. Unfortunately, the increase that has occurred between 2021 and 2022 is significant enough that TOUA is unable to continue to absorb the cost impact of this increase.

The TOUA Board and Management are looking at ways to cut costs and still provide the same level of service you expect from TOUA. Some of the cost-cutting measures could include route changes and changes in delivery schedules. Before any changes in delivery schedules, you will be notified about the changes.

Properly maintaining your appliances and heating equipment, along with best practices in home insulation will help reduce your propane bill. The Tohono O’odham Utility Authority strives to provide affordable and efficient utility service to our customers. Anyone with questions or concerns may call our offices at 520-383-2236.

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