Propane Prices

[ultrarunner]

I think because they come to you so options are limited for most and with few suppliers in many areas they are the only game in town...

 

[CADplans]

U.S. Weekly Heating Oil and Propane Prices (October - March)

why do propane suppliers get to triple the price of their product
while clearly fuel oil suppliers don't?

Residential oil buyers own their tank,,

Only a small fraction of propane residential buyers own a tank large enough to get discount pricing.
That 1,000 gallon propane tank investment is a big risk.

You do not get a discount filling an 80 gallon tank,,
the propane company charges a premium to even fill the small ones,,,

So, if you are using the propane companies tank,,
you are paying a large percentage of your propane bill as tank rental.

AND,, the propane company usually charges the rental cost of the tank as a per gallon mark-up.
in other words,,
have the propane company tank,
use more propane
pay more per year,,, :thumbdown:

 

[bumperm]

How is a 1000 gallon tank a big risk? Mine happens to be underground, but I have a neighbor with an above ground he owns. Ain't gone bang or Pft! yet :c)

 

[lilranch2001]

I tried and tried and tried to find a 1000 gallon tank to purchase and so far it has been a no go.
everybody I find that has one to sell is over 100 miles away .

 

[CADplans]

How is a 1000 gallon tank a big risk? Mine happens to be underground, but I have a neighbor with an above ground he owns. Ain't gone bang or Pft! yet :c)

When I bought my tank,, there was O N E propane dealer in the Roanoke area.
I had to pay the price per gallon that one company dictated,,

Luckily,, that changed within a year or so after getting the tank.
Now, I have at least 4 suppliers to call for pricing.

 

[TheMan419]

I think because they come to you so options are limited for most and with few suppliers in many areas they are the only game in town...

Yeah I'd certainly check what options were around if I were to buy a tank. Also many companies will insist on a safety checkup before they fill.

 

[bumperm]

Yeah I'd certainly check what options were around if I were to buy a tank. Also many companies will insist on a safety checkup before they fill.

There's at least half a dozen propane companies in my semi-rural area. I own my own 1000 gal in-ground, so shop and compare. When using a "new" company for the first time, they are required by NV regs. (don't think it's a Fed reg, but could be) to inspect tank and gas appliances. I have never been charged for this service, nor for delivery charges and other "pads", some of the bigger companies may charge. Since the bigger companies are seldom competitive, I'm most often dealing with the smaller ones. I tell them going in that I will pay COD, no credit card and to give me their best price. They know I won't share their price or ask others to beat it. The bigger companies keep calling me with "specials" though. My price is most often about $1 below that charged by Ameri-Gas, Campora, etc, to their rental tank customers.

 

[NoTrespassing]

There's at least half a dozen propane companies in my semi-rural area. I own my own 1000 gal in-ground, so shop and compare. When using a "new" company for the first time, they are required by NV regs. (don't think it's a Fed reg, but could be) to inspect tank and gas appliances. I have never been charged for this service, nor for delivery charges and other "pads", some of the bigger companies may charge. Since the bigger companies are seldom competitive, I'm most often dealing with the smaller ones. I tell them going in that I will pay COD, no credit card and to give me their best price. They know I won't share their price or ask others to beat it. The bigger companies keep calling me with "specials" though. My price is most often about $1 below that charged by Ameri-Gas, Campora, etc, to their rental tank customers.

$1 below?!? I only paid 99 cents last summer. How much are they charging out there?

Kevin

 

[bumperm]

$1 below?!? I only paid 99 cents last summer. How much are they charging out there?

Kevin

Last summer I paid $1.24, but I think the west coast (and the western part of NV) are generally a bit higher in any case. A larger company called me with a "special" the other day, $1.84. When I filled a couple of months ago, I paid $1.58 (IIRC). Cheapest I've ever paid is $.92. The rental tank customers are paying about $2.60 or so.

 

[dragoneggs]

I imagine different areas of the country vary a lot, not only in pricing but how they service you. When I bought my current house we inherited a 500gal leased LP tank. Problem was that because it was leased, no one but the owner (Suburban Propane) would fill it and I was at the mercy of their pricing. Which I soon realized they were gouging (not giving me market pricing). I complained a couple of times and they knocked a $1 or so off per gallon but that got old so I started shopping around. I ended up downsizing and buying a 250gal tank from Ferrell gas. I now can shop 3 or 4 nearby LP suppliers but I always end up refilling with Ferrell as their prices have always been lowest. Not including the much lower pricing I get now, by buying a tank, I paid for the cost of leasing a tank in 5 years.

 

[daugen]

can anyone ballpark the cost of a 500 and 1000 gallon underground tank if one wanted to purchase one?
Wondering if my usage of about a thousand bucks of propane a year would provide any justification for buying my own tank. I know I could likely save 20 or 30 cents per gallon, but just say I could save $200 to $300 per year.
Wondering how many years to get that back.

And...I bet it would cost four figures to get someone to dig up my back yard, avoid the septic systems and put in a new tank. I neither have a backhoe nor know how to use one, so not going to rent a backhoe on this. And frankly I would sure want someone who knew what they were doing.

When I learned there was a 80 cents difference in my local company's "preferred retail" pricing track than their
employee price, I knew there was tons of profit here. But you know...they take care of the equipment and make a profit of what, three hundred maybe four hundred bucks a year off me. Add another zero and I'd be digging myself, but I don't want to spend 5 grand to save three hundred dollars a year. Nor do I like getting ripped off...

the other alternative is to just tell them to take their 500 gallon above ground tank back and find another one of those, which I assume is both easier and cheaper than an underground tank. Anyone who has gone through this cost calculation process, would be interested to hear if the numbers worked for you.

 

[TCJatko]

can anyone ballpark the cost of a 500 and 1000 gallon underground tank if one wanted to purchase one?
Wondering if my usage of about a thousand bucks of propane a year would provide any justification for buying my own tank. I know I could likely save 20 or 30 cents per gallon, but just say I could save $200 to $300 per year.
Wondering how many years to get that back.

And...I bet it would cost four figures to get someone to dig up my back yard, avoid the septic systems and put in a new tank. I neither have a backhoe nor know how to use one, so not going to rent a backhoe on this. And frankly I would sure want someone who knew what they were doing.

When I learned there was a 80 cents difference in my local company's "preferred retail" pricing track than their
employee price, I knew there was tons of profit here. But you know...they take care of the equipment and make a profit of what, three hundred maybe four hundred bucks a year off me. Add another zero and I'd be digging myself, but I don't want to spend 5 grand to save three hundred dollars a year. Nor do I like getting ripped off...

the other alternative is to just tell them to take their 500 gallon above ground tank back and find another one of those, which I assume is both easier and cheaper than an underground tank. Anyone who has gone through this cost calculation process, would be interested to hear if the numbers worked for you.

I just ran into the "tank rental monopoly" last fall here in rural Maine. A local company sold me a three-year-old 500 gal. tank for $1 K installed (above ground). Expensive, but now I have the option of buying from the lowest price supplier. Bulk pricing saved around 60 cents per gallon, so it should pay for itself in about five years.

 

[daugen]

Thanks. Five years is fine. That would work for me. Maybe ten at the most. This is right in the middle of my nicely landscaped back yard. I was hoping to bury it
since they seem to allow that now versus fuel oil tanks which for residences in many areas have to be dug out of the ground by code. Been there done that.
So I'm probably doubling the cost and looking at ten years.

 

[bumperm]

Daugen,

Another option is to first price the cost of a new 500 above ground, if that's what you have. Then call your current propane company and ask them if they'll sell you their tank. The price should be a good amount less for the used tank.

As to the 1000 in-ground, the tank will cost near $3000, and installation and other costs may bring the price to $5K. I've heard of less, but that's what it cost me. Except for esthetics, space consideration, earthquake safety etc, (which played a part in my decision), it is more cost effective to get an above ground and paint flowers on it (or something) :c). Payoff will likely be quicker than you think - I've been averaging $1 a gallon less, but the captive customer companies here keep their prices as high as possible.

 

[hawkeye08]

Local supplier told us that if we owned 1000gal tank, it would have to be re-certified every 5 years or something, but if we rented, they would take care of tank. We rented (mostly because we could not afford to buy our own tank) and they have done nothing to the tank for 24 years. We get a decent price and only need to fill annually. We use about 400gal.

 

[Pixguy]

Local supplier told us that if we owned 1000gal tank, it would have to be re-certified every 5 years or something, but if we rented, they would take care of tank. We rented (mostly because we could not afford to buy our own tank) and they have done nothing to the tank for 24 years. We get a decent price and only need to fill annually. We use about 400gal.

Local supplier bs. It's to their advantage to rent you the tank AND keep you captive because you have their tank.

 

[bumperm]

Local supplier told us that if we owned 1000gal tank, it would have to be re-certified every 5 years or something, but if we rented, they would take care of tank. We rented (mostly because we could not afford to buy our own tank) and they have done nothing to the tank for 24 years. We get a decent price and only need to fill annually. We use about 400gal.

As Pixguy said, total garbage! Keep in mind that those companies do not want you to own your own tank. As long as you rent from them (or even if some let you use their tank for free, which is also common), they *HAVE* you as their customer - basically a monopoly. They know most customers will not bother to switch if they are paying a bit more than they need to, or even more than a bit more. Most customers won't shop when that's not convenient to do and most won't then use that info to complain to their "sole provider".

Did you know that even with a rental tank, you can demand that they call you with pricing *before* the deliver (at least in most states)? This is recommended as it gives you a chance to squawk loudly if you think you are being fleeced. You can also tell them to come get their tank - by law, in most states they are required to do that for free, and to measure and refund you for the propane remaining in the tank, all on their dime. They do not want to do this, as it costs them and they lose a customer. You can then get another company to install their tank, also for free - check ahead of time if they have fees, most will waive them if you insist. When you talk to a propane company about buying a tank they may dump the "maintenance" threat on you, telling you that when you rent, they take care of all that. Yes, that's true, but maintenance is rarely required. How often has your tank or regulator required service? When you own the tank, the company you are buying propane from will gleefully provide any repair required. Some things, like the gauge face, are easy to replace by the customer on most tanks, and failure there isn't common either.

Still, by far the best option is to own your own tank, IMO.

 

[sam5570]

$1 below?!? I only paid 99 cents last summer. How much are they charging out there?

Kevin

I work in the propane industries and summer price will come in here starting end of this month around 99 cents per gallon.

 

[sam5570]

I have read over some of the post here and a lot of good information shared. The only thing I would add is when you are dealing with your supplier be very aggressive as to what you will pay versus what they want you to pay and most time if you are in ball park they will agree. The propane industry has suffered 2 warm and mild winters and they need to move propane. In some cases they will wave the rental fee and you pay nothing for that, you can also lock in a price for as long as 2 years in some cases.

 

[teejk]

Grain farming areas get a break because a lot of the propane is used for grain drying and after the fiasco a few years ago more storage has been added. I rent a 500 gal and 250 gal tank from the Co-op that supplies the farmers and as long as one fill goes through it every year there is no rent. We get the choice every year (July) whether to #1 "go naked" #2 "pre-buy" at a set price (determined before I know the moisture content of corn and beans and well before I know the winter temperatures) or #3 Pay $70 to have the price "capped" at the level they determine in July. This year I opted for #2 at a $1.14/gal. (the "cap" price was $1.49 at the time). I exceeded my "pre-buy" allowance by about a 75 gals but the current market price was $1.16 for the excess about 2 weeks ago.