Canadian propane costs soar due to supply chain issues

A technician walks among propane tanks at Sunbelt Rentals in Ottawa, on Tuesday, Sept. 15, 2020. THE CANADIAN PRESS/Justin Tang

There are 1.5 million households in Canada that rely on propane for heating.

Now those homeowners will have to pay a lot more to stay warm this winter following a price hike in propane costs.

A couple from Ennismore, Ont., north of Peterborough, has to get their propane tank filled about four times a year and they recently got their new propane fixed billing contract.

The price last year was 67 cents per litre for propane. The new price is 86 cents -- about 28 per cent higher.

The increase means they’ll end up spending $300 a month on propane, almost double the $176 they are used to paying.

“As seniors and someone with a disability, we feel we can't handle that type of increase," Warren Bussey told CTV News Toronto.

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The couple says with inflation, increasing food prices, gas and other items, they're having a hard enough time paying their bills as it is.

“It's pushing us over the edge. I can't sleep at night. I worry about what's going to happen to us," Jacki Cumming said.

In a statement to CTV News Toronto, Teresa Crosato, senior manager of marketing communications with Superior Propane, (which services the home) said the price increase is the “reality” across the energy sector.

"Increased demand is outpacing supply which in turn is raising energy prices around the world.” Crosato said. "Price increases are impacting not just propane but also furnace oil, gasoline and diesel. Increased demand is outpacing supply which in turn is raising energy prices around the world.”

Shannon Watt with the Canadian Propane Association said it’s hearing from concerned homeowners about the price hike and is calling on provincial governments to bring in rebate programs to help propane users get through the winter.

“Propane is not immune to inflationary pressures that we are seeing elsewhere. I would recommend that consumers who are concerned about this winter heating season to be reaching out to their politicians."

Bussey and Cumming say they're not sure how they'll be able to afford their propane costs and are hoping the government will bring in a plan to help them stay warm this winter.

Meanwhile, the Alberta government has introduced a rebate program to help people pay their energy bills. The Propane Association says it's hoping Ontario can introduce something similar to help customers deal with the price hikes.