Pre buy propane

I’m relatively new in using propane and have done a pre buy program for the two previous years I’ve had it. It’s time to sign up for the year and I am wandering if I’m getting a fair deal. My pre buy price was $1.94 gal the last two years. This year it is going to be $2.37 gal and I don’t own my tank. How does 2.37 compare to what you pay?

Around here, propane price is based on user consumption. The cost per gallon can vary wildly from customer to customer depending on how much they use.

I average 635 gallon a yr

It's mostly cheaper in the summer . when I used l.p. I owned the tank. The way the economy is going I can't figure it would be cheaper in winter.

Ours runs between $1.15 and $1.35 prepay the last few years if it goes higher I just run the straight wood boiler then.

I've never pre-bought propane. However, at one point in time, I didn't own my tank and had to buy propane from the company that did own the tank. At that time, they wanted to charge me $4. The average at that time was about $2.50 in my area. It was a crazy situation and I went way up the chain in that company to voice my opinion. I ended up buying my tank and having another company fill it for roughly the same amount the original company could fill it for. It was gouging at it finest. Not sure how long you've had your tank but at some point in time the tank will depreciate to the point that it is smart to go ahead and buy it so you can use whomever to fill it imo.

Sorry it worked out that way Coop74. I have had good luck finding local companies who want my biz and they have tanks for rent, re-manufactured or brand new tanks they can price installed, and will usually allow you to prepay as low of a price as they can offer and one even matches his competitions pre-pay price if it is better. This IS the time of year to wheel and deal IMO anyway

Propane prices seem to vary thru out the country with the eastern US being the highest. I own my own tank. Initially I bought my tank was because a new company purchased my propane company and then they had lawyers draw up a three page contract. I refused to sign it so bought my own tank. You will not be able to get any deals unless you do own the tank. The company that is renting you the tank has got you over a barrel. Even thou I own my tank I have a local company that I like and their price is fair so I usually buy from them. I have a summer fill price this year it is $1.65 per gallon. Last year it was $1.45. I can pre buy for winter also at a set price per gallon. Not sure what the price will be yet. Last year it was $1.60 .I did not buy any and in March I needed some and it cost me $2.05 a gallon.

Yes I’m going to look into buying a tank. When dealing with my supplier I get the impression they are a bit slimy. I realize with dems in office the price is going up but I want to make sure whoever I buy from is not sticking it to me

When you lease a tank they jack up the price over what they will sell to one that owns their tank. Tanks also have a date on them where they have to be retested before getting them filled. DON'T mess up and run out of propane as there is a fairly new federal rule if your tank is empty and they have to test ALL your whole system and it runs around $100 here. If you own a grain dryer or LP fueled tractor there is another lower price per gallon on that as well.

I usually contract my propane around the first part of July as it seems that is about the best time and price for around here. Neighbor just bought a second tank last year so he can buy at the best price with out having to worry about running out. The company he bought it from just told him used tank prices have skyrocketed and if he was interested they could sell his extra tank for him. It's always a gamble on when to buy and what worked for you last year may not work again for you this year.

We don't have prepay. We have summer fill. You can not pay for more than you can hold. Summer fill has been right at a buck. I filled this spring before the summer preice kicked in and it was $1.65 I would be looking to get propane else where.

The way inflation is hitting energy prices I would lock in something now.

Our oil company will let you prepay but if it goes down that’s what they charge you if it goes up they honor the prepay price.

We own our 500 gallon tank and each August we call the local suppliers for a price quote. Usually find the price at .95 to 1.10 per gallon. If you call once heating season arrives or in the dead of winter (ouch) 2.00 or more per gallon. Only use 275 gallons a year as we keep thermostat low and burn wood in a Cozy Heat fireplace. Water heater and one cookstove used for canning are propane too.

Chris

Run propane here our local mom and pop place has me on a keep full for $100 per month. I always have a 6 or 700 dollar credit balance. They do let my tank drop to about 30 or 40 in the spring and not fill it till the summer rates to save me money. I have a 750 gallon tank, I think. Great company to deal with.

Propane will do nothing but go up as will all fuels and electric costs. Buy today as it will be higher tomorrow, thanks Joe.

That's actually of good information about summer pricing. I'll look into a pre-paid situation in the near future. Thnks. I got really mad at the company that owned my tank back in the day. One of the things I got so mad about was thinking about people that were older and on a fixed income. That company was raping them and I'm sure they never questioned their bill.

You should live up here in the Northeast….pre buy LAST Year was a steal @ 2.99 gal……lol…and that was the 500 gal price too.

I just contracted 490 gallons at $1.40 a gallon. That will get me through the winter.

Great info. Thanks everyone. I asked her for the summer fill cost, she said $3.00. That doesn’t make sense other than they are trying to get me into the pre buy plan. Are the propane companies the best place to purchase a tank? Anything to watch out for when buying a used tank?

They make underground tanks. I had one for 15 years of hurricane flooding, and it stayed right there. My neighbors had to find theirs in the marsh. You have to buy the tank however.

I usually contract for 1300 gallons a year. 1.25 a gallon last year.

Everyone consider that the price of steel is triple in the last year , so are those used tanks gone up in price ?

$1.49 pre sale last summer I do it every year, but with any luck ill be running a wood boiler next winter

The more gallons your tank can hold the better because cheapest price is in the summer fill. The cheapest way is to fill summer to summer Sounds like your propane company is trying to rip you off but to double check I would call OTHER propane companies in your area. Ask them if they have a summer fill rate and what it is if you own your own tank. You will have to have a minimum purchase to get the best summer fill rate. The more you buy the cheaper it gets. Used propane tanks can be hard to find sometimes. I would drive by a few of your local propane sellers and see if they have a lot of used tanks in their yard. If they do hit them up they may sell you one.

When I used propane and owned my tank, I found that propane companies really didn’t compete. They conspired. Any new company wanted to charge me a service fee to check all appliances. The fee was much higher than the incremental cost of remaining with an original supplier. No competition at all!

There is peace of mind in knowing you have a full tank. I’d go for the summer refill. The world is crazy. Inflation in May was 6.6%, the highest month ever recorded.

I think we just pre-bought at $1.09 if I'm not mistaken. The only issue that I have seen with owning your own tank are years like we have a few years back when the supply was really low. If you hadn't pre-bought and needed propane you were SOL as the companies were only supplying fuel to their tanks or those that had pre-bought. A lot of people were heating with space heaters for a while.

Any idea why, Charles?

I guess it's a big ol mystery and we never will know the answer LOL

I would like to know how many guesses we are allowed ?

Mine runs between $1.29 and $1.59 depending on if it’s summer or winter.

No pre buy in my area. Propane dealers are all independents. The man that delivers to me is also a rancher. Doesn't matter who I get it from, it is at least a 60 mile round trip to deliver to me. No underground tanks here for years.

I own a 250 gal. tank and it usually costs around $2.35 a gallon to have it filled. No difference between summer and winter price.

I have two 1,000 gallon tanks here so I could take advantage of summer prices. It’s a lot of fuel. Lol.

Apparently so.

Found a 500 gal refurbished tank for $1500. Going to check current summer fill prices and decide whether if it makes sense to do it now. I researched ky propane prices going back to 2000 and what I pre-paid the last couple years seems in line.

You can't go wrong buying now. The current administration is doing everything possible to increase traditional energy prices to make green energy seem more competative. And, when they "fix" global worming it's going to be a lot colder around here!

You make a fair point Walleye- green energy sure did little to help Texas when Boco's weather got lost and wondered in last Feb.