Propane Supplies Fly Off Store Shelves As COVID Drives Outdoor Dining

Since the start of the virus pandemic, various consumer services such as restaurants, bars, and clubs have moved outdoors to reduce the risk of virus spread. 

As a result, supplies of propane tanks have been depleted across the country as demand for small cylinder tanks jumps 75% year on year. 

FT notes that hardware stores, such as Ace Hardware, Lowe's, and Home Depot, are having extreme difficulty keeping up with the demand for portable steel tanks as demand is off the charts. 

Propane Education & Research Council said demand for propane retail-size cylinders would be around 500 million gallons this year, up from 284 million in 2019. 

At the start of fall, we cited a Goldman Sachs report detailing how restaurants approved for outdoor dining in public areas in NYC have risen from 10% to more than 40% in just a few months. Similar outdoor dining trends have been seen in nearly all US metro areas as state and local governments limit indoor dining. 

(Click on image to enlarge)

So far, restaurants in NYC have had a mild winter. Many of these shops are stocked up with propane cylinders and heaters to preparing against colder weather. Goldman noted if daily average temperatures slide below 40°F - then it would be associated with a steep drop off in consumer activity at eateries. 

(Click on image to enlarge)

Complicating things for restaurants, states and governments have been limiting indoor dining and outdoor as virus cases uncontrollably spread across the country.

For more on the buying panic, the largest US propane retailer, UGI, recently reported that its AmeriGas cylinder exchange service hit record volumes through the end of September. UGI delivers tanks to many retailers, including Home Depot.

Suburban Propane Partners, another propane retailer, said its business segment that sells retail-size cylinders has "significantly benefited by all of the outdoor living activities."

1 2
View single page >> |

Disclaimer: Copyright ©2009-2020 ZeroHedge.com/ABC Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies every time ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.