Many propane suppliers offer a variety of propane price protection plans through the summer months. These plans are designed to help propane consumers control their propane price through the following winter heating season. Propane consumers should always review and consider available propane price protection plans offered by local suppliers.
Propane Pre-Buy is a very common propane price protection plan offered by many propane suppliers. Propane pre-buy basically enables a propane consumer to purchase a specific quantity of propane gallons at a predetermined propane price per gallon before the winter heating season begins. Once the propane price plan is in place, the propane supplier will typically deliver the propane to your propane tank automatically until the quantity purchased during the summer is exhausted. While many propane consumers purchase a quantity that matches their historical winter consumption, some consumers may decide to purchase a lesser quantity if they they have installed other propane heating systems, they wish to spread the propane price risk between pre-buy and non-pre-buy propane, they feel their household propane consumption will be lower than past winter heating seasons and other reasons.
Propane Price Cap is another popular propane price protection plan. Propane price cap plans are designed to limit the high-side propane price per gallon – which gives a homeowner peace of mind that their propane price per gallon will not exceed a specific propane price per gallon during the following winter heating season. Some propane consumers view a propane price cap as an insurance plan limiting the propane price per gallon. A propane price cap typically does not have any impact if the propane suppliers propane prices does not exceed the maximum propane price level specified in the price cap agreement.
Propane suppliers may or may not charge a fee to participate in a propane pre-buy plan or a propane price cap program.
It is important to remember that not all propane suppliers offer propane price protection plans. As a result, some propane consumers may not have the opportunity to participate in propane price protection plans. Also, when propane suppliers offer similar propane pricing plans, the propane prices and terms of the agreement can vary between each propane supplier. Therefore, it makes sense to contact all suppliers and inquire about all propane price plans and the details of each plan, including supplier fees, offered by each propane supplier in your area.
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