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Relief for Propane Customers

January 31, 2014

  02/03/14 Much of the country is experiencing a propane shortage. With subzero temperatures and snowstorms across the state, this poses a serious threat to Hoosiers.

In the wake of this shortage, propane prices have skyrocketed. Indiana’s average propane price jumped more than 40 percent this week, reaching $4.22 per gallon, though many Hoosiers are reporting even higher prices.

Members of the Indiana Senate Majority Caucus have offered an amendment to Senate Bill 1 that would provide relief to Hoosiers who may be affected by the propane shortage.

The amendment would eliminate the sales tax on any propane bought for more than $2.50 per gallon.

If passed into law, customers would get a credit on their next propane bill to offset the sales tax paid on any charge over $2.50 per gallon.

For example, a homeowner with a 500 gallon propane tank paying the state average of $4.22 per gallon would save about $60 on their bill.

This credit would be retroactive to Jan. 1 and would be effective through March.

If you have any questions or need additional information, please contact Senator Randy Head at or call 800-382-9467.