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Many homeowners use propane to heat their home. A typical home equipped with propane heating and cooking appliances can use over 1,000 gallons of propane per heating season. A larger home equipped with propane heating, cooking, clothes drying, spa and swimming pool heating appliances, can use well over 2,000 gallons per heating season. Heating your home with propane can be very expensive!
The propane cost information in this website is presented in eight sections:
We recommend that each section be read in the order presented above. The first section will provide a list of frequently asked questions regarding residential propane prices. The second section provides link access to our "Propane Price Tips" to help propane consumers obtain propane prices that are highly competitive. The third section provides a link that will take you to the website "CheckPropanePrices.com". This website provides a survey of propane prices shared by residential propane consumers across the United States. This is a great tool to compare the propane prices paid by other propane consumers in your state/county. The fourth section provides information on residential propane buying groups. The fifth section provides link access to a brochure that is offered by the Federal Government Energy Information Administration (EIA) to help propane consumers gain a better understand of propane prices. The sixth section will provide a brief summary of changes that have occurred to propane prices across the United States during the past week (available Oct-Mar period only). The final section will provide link access to more detailed national propane pricing averages reported by the Federal Government EIA.
Upon completion of the material presented in this website, residential propane consumers will have a solid understanding of propane prices and realize that propane suppliers must work hard everyday to earn their business through excellent customer service and competitive propane pricing or risk losing customers to other local propane suppliers.
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This is the beginning of our "Propane Pricing FAQs" Page:
Propane prices are typically not subject to government regulation. Without government regulation, propane suppliers are free to adjust their propane prices to any level at any time. If a propane consumer is using 1,000 gallons of propane per year and is paying 50 cents more per gallon than the propane price offered by most other suppliers in the area, that consumer could be overpaying by $500 or more per year. To avoid overpaying for propane, each propane consumer must proactively research and remain aware of the propane prices offered by competing propane suppliers offering service in their area. Since most propane suppliers choose not to publicly post their current propane prices, researching propane prices requires some detective work on the part of each propane consumer.
Propane consumers should never authorize their propane supplier to make automatic propane deliveries without knowing their exact propane price per gallon before each delivery. Whether the propane supplier publicly posts their current propane prices on their company website for customer comparison or agrees to communicate the current propane price per gallon through an e-mail, voice-mail or fax 24 to 48 hours before each delivery, it is absolutely critical that each customer know their propane price per gallon before accepting future propane deliveries. With knowledge of the propane price per gallon before each automatic delivery, propane customers can compare and verify that the price is competitive before receiving each delivery. Conversely, if a consumer discovers that they have received an automatic delivery at a clearly non-competitive price AFTER the propane has been delivered, their propane company may charge a "pumping-out" fee (assuming this fee is in the suppliers service contract) if the customer insists that the non-competitively priced propane be removed from their tank and the supplier's service be discontinued (assuming that the customer is not obligated to a longer-term propane service agreement). In this situation, the customer may be obligated to pay either the higher propane price per gallon or a propane "pumping-out" fee AFTER the propane has been delivered. Bottom Line: Always find out and compare your propane price per gallon BEFORE each automatic propane delivery.
Several factors impact a consumer's current residential propane price. Two of the very important factors include propane tank ownership (customer-owned tank or leased tank from a supplier) and propane price protection programs (pre-buy propane agreements and price cap agreements). In additon, propane consumers with a home heating system (one or more furnaces and/or space heating appliances) will typically use a higher volume of propane than a consumer that uses propane for cooking only, for example. As a result, home heating consumers should be paying lower, extremely competitive propane prices versus the propane prices paid by consumers that may be using propane for cooking only.
When a propane consumer owns his/her propane tank, this consumer is free to call any/all propane suppliers in the area that offer "customer-owned propane tank service" to compare their current propane price per gallon and order propane from the supplier of their choice when a delivery is needed. Since this customer is not locked into one suppliers propane service and propane pricing, many customer-owned propane tank consumers pay lower propane prices as they benefit from several suppliers aggressively competing for their business each time a delivery is needed. Propane consumers that own their propane tank have significant control over their future propane pricing.
Conversely, when a propane consumer leases his/her propane tank, this customer is typically locked into the single propane supplier that installed the leased tank and is subject to the propane prices charged by that single supplier for each future delivery. Most propane suppliers will appropriately recommend that customers with their leased propane tanks agree to an "automatic-fill" or "keep-full" delivery program to optimize routing efficiency and minimize the chance of a customer run-out. However, since most propane suppliers choose not to publicly post their propane prices, many customers receiving automatic-fill deliveries on random delivery dates without a propane supplier price protection agreement will be unaware of their propane price per gallon until they receive an invoice from their propane supplier requesting payment for a recent delivery. Without being aware of their propane price per gallon before future deliveries, these propane consumers have very little control over their propane pricing and may or may not be paying competitive propane prices for propane deliveries that occur in the future. Taking delivery of any product without knowledge of the price prior to the delivery is unwise and puts consumers at a significant disadvantage. Hence, if a propane consumer is leasing a propane tank from a supplier without a price protection agreement, it is absolutely critical that he/she be aware of their exact propane price per gallon before accepting future propane deliveries.
There is absolutely no reason that your propane supplier's propane prices need to be a mystery until you receive an invoice requesting payment for a recent delivery. Propane prices should be just as openly accessible to consumers as the the illuminated signs displaying current gasoline prices clearly displayed to motorists traveling along public roadways. However, since propane is typically delivered to homes rather than picked up by customers at a propane plant, customers may request 24/7 access to their supplier's current propane prices through their propane suppliers website. If the propane supplier providing your leased propane tank chooses not to publicly post their current propane price per gallon for customer comparison, contact your supplier and request an e-mail, voice-mail or fax 24 to 48 hours before each future delivery providing advance notification of your propane price per gallon. This will give you the opportunity to compare your supplier's current propane price per gallon to the Federal Government EIA Propane Pricing Data and other local suppliers to ensure that it is competitive before each future delivery.
If your supplier is unable to provide 24 to 48 hour advance price per gallon notification before each delivery, contact your supplier and request that your delivery status be changed from "automatic fill delivery" to "will-call delivery". This simply means that it becomes your responsibility to check your tank gauge and contact your supplier to order a propane fill when the tank level reaches a certain level - typically in the 20% to 30% full range. At the time that you contact your supplier to order your will-call delivery, simply ask your supplier for your propane price per gallon that will apply to your requested delivery. The next step is to complete your price comparison process as noted above. If you have any questions or concerns regarding your propane price per gallon, contact your propane supplier prior to your delivery. If your propane supplier communicates that changing your delivery classification from "automatic delivery" to "will-call delivery" will make you a low priority customer receiving low priority deliveries, you should seriously consider changing your service to another propane supplier that will truly appreciate your business and provide excellent customer service regardless of your delivery classification.
While many customers lease a propane tank and others purchase a propane tank, it is important to consider the responsible party for any future tank maintenance and repairs. Suppliers are typically responsible for any tank repairs to their leased tanks, while customers are typically responsible for any repairs made to a propane tank that they own.
If you are leasing a propane tank from your supplier, your supplier is typically responsible for promptly repainting its leased tank, as needed, to help you maintain the appearance and value of your property. A leased propane tank with faded and peeling paint and a mismatched rusty lid should not be acceptable to any homeowner. If your leased propane tank is in need of replacement or repainting, contact your supplier's service department to have your tank replaced with a new tank or repainted as soon as possible. If you are being charged a tank rental fee, you should contact your supplier to request that the tank rental fee be suspended - or at the very least reduced - until the unsatisfactory tank is replaced or repainted. Summer is the best season to have your propane tank replaced or repainted as the process can be completed quickly without weather challenges.
When considering several propane suppliers to install a propane tank and provide service, beware of suppliers that only lease propane tanks or suppliers that strongly discourage you from purchasing your own propane tank. A reputable propane supplier will carefully explain the advantages and disadvantages of both purchasing vs. leasing a propane tank and encourage you to make the decision that is best for your situation.
A propane price protection agreement is any type of propane supplier agreement that either establishes a maximum propane price per gallon for a period of time or establishes a fixed price per gallon for a specific volume of propane through the following heating season. The common propane price protection programs include "propane pre buy" or a "propane price cap".
With a propane pre-buy agreement (sometimes referred to as a "contract price"), a propane customer will purchase the amount of propane that the customer is expected to use during the following heating season in advance (typically mid to late summer before the heating season begins). Since the summer months are non-heating months, propane demand is typically lower and prices may be favorable for propane pre-buy agreements. The propane is purchased at a fixed price per gallon and is typically paid in full at the time of the pre-buy agreement. Some suppliers charge a propane pre-buy participation fee while other suppliers do not charge a pre-buy participation fee. When winter arrives, the propane supplier will then deliver the propane to the customer's tank as needed throughout the heating season until the total propane pre-buy volume has been exhausted. When the propane supply has been exhausted, the price for additional propane will typically change to the current non-pre-buy price offered by their propane supplier. If a surplus of pre-buy propane exists after the heating season, the supplier may refund the balance or credit the propane balance to the following heating season.
With a propane price cap agreement, the supplier will offer a high-side price cap to ensure that the customer's propane price per gallon does not exceed a specified amount during the upcoming heating season. Propane suppliers will typically charge their customers a participation fee for a propane price cap agreement.
Yes. New customer offers are very common among propane suppliers to attract new customers. "New customer offers" can include some free propane, no tank rent and/or lower propane prices during a period of time following the start of a new customer agreement. However, it is very important to distinguish between propane prices that are part of a new customer offer and propane prices that apply after the completion of the "new customer promotional offer". The truly relevant information is the suppliers everyday propane pricing.
Many propane consumers elect to prebuy their estimated propane supply for the upcoming winter. Since the demand for propane is typically lower during the non-heating summer months, propane pricing is typically lower, which may create a favorable propane buying opportunity. Propane pre-buy is typically a money saving program for propane consumers. However, many propane consumers that bought a prebuy contract during the summer of 2008 were surprised to discover propane pricing during the winter was lower than many summer prebuy contracts. It is impossible to predict the future of propane pricing with certainly. Therefore, it makes sense to contact your supplier and inquire about their propane pre-buy offer each summer. When considering any propane price protection program, make sure that you are aware of any participation fees that may apply.
No. Propane companies have operational expenses just like any other business. Some propane companies charge their customers propane delivery fees, safety hazmat fees, administrative fees, prebuy and payment participation fees, invoice fees, fuel surcharge fees, etc. When these fees are included in your bill, they can drastically increase your propane expense with a propane supplier.
If applicable, ask your supplier to explain these fees in detail. It is very important to understand all of these extra propane supplier fees and what triggers the charges. Are the charges per delivery? Are they per invoice? Do they apply under other circumstances? Are these fees passed directly through to the government or does the company retain the money to help offset expenses resulting in better company profits? Not all suppliers charge extra fees.
Converting the annual total of the fees not paid directly to the government into a propane price per gallon value will provide useful information when comparing your price per gallon with other suppliers. To determine your additional price per gallon attributable to your suppliers extra fees, contact your propane supplier and ask them for the total of the fees that you paid and your total gallons purchased during the past 12 months. Divide the total fees by the total gallons to arrive at the additional propane price per gallon attributable to your suppliers extra fees. For example, if your total fees were $90 for the past 12 months and you purchased 900 gallons during the same period, your estimated additional price per gallon attributable to extra fees is estimated to be 10 cents per gallon. Keep this in mind when comparing the residential propane price per gallon among various suppliers in the future.
When multiple propane suppliers are competing for your home heating propane business, you should view this as an opportunity to achieve highly competitive propane pricing with excellent service. When interviewing several propane suppliers in your selection process, ask the following pricing and service questions of the companies being considered: (1) Does your propane company display current propane prices on your website? If not, to give me an opportunity to compare and verify that your propane prices are always competitive, will you give me a voice mail, fax or e-mail 24 to 48 hours before each automatic delivery notifying me of my propane price per gallon for the scheduled delivery?, (2) Since most propane supplier's choose not to publicly post their current propane prices, and most federal goverment EIA propane price surveys are only available October through March each year, how do you know if your propane prices are always competitive when government propane price surveys are not available and you can't see the current propane prices offered by most other propane companies competing in your service area? (3) If your home has a propane fueled furnace, ask each propane supplier to provide a printed report showing their propane prices charged to their home heating customers during the past 12-month period on a weekly basis. If you found that the other local propane suppliers do not publicly post their propane prices for public comparison (See Item #2 above), ask the propane supplier how they obtain competitor propane pricing information to align their own propane prices to be competitive each day between April and September when most Federal Government EIA propane price surveys are not available. Your goal is to gain access and monitor the same source of competitive propane pricing information used by the local suppliers to set their own propane prices as a basis for your own competitive propane pricing research.(4) "Competitive propane prices" indicate that the supplier is consistently offering propane prices that clearly "compete" with the propane prices offered by other local propane suppliers. Hence, if a propane supplier is willing to match the propane prices offered by other local suppliers, then the supplier is clearly "competing" with the propane prices offered by other local propane suppliers. Ask each supplier the following question: Will your company note in our written agreement that you will consistently match or beat the propane prices offered by other local propane suppliers during the term of my propane service agreement?, (5) If I receive a price quote from your competitor that is more than 10% below your current propane price at anytime during the term of my service agreement with your company, will you write in your agreement that I can cancel your contract without further service obligations and receive a full refund for any installation costs that I may have paid when I started your service? (6) Does your company install new or used propane tanks? If the supplier installs used propane tanks, before signing any paperwork, visit the supplier's plant to inspect the specific tank that is earmarked to be installed at your home. You want to make sure that your supplier's used propane tank is rust-free and freshly painted, with a functional lid - to ensure the tank does not have a negative impact on the appearance of your property. Make a note of the propane tank serial number for comparison after the installation has been completed. Ask the supplier if they will note in your written service agreement that they will replace or repaint the tank every 24 months, for example, while they continue to be your propane service provider - without further notice from you. Ask the supplier if they will agree in writing to automatically suspend the tank rental fee if the repainting service is not completed as per the timing in your written agreement. (7) Many propane consumers purchase their propane tank allowing them the opportunity to call other propane suppliers to compare local propane prices and order propane from the supplier with the lowest propane prices. It would be very beneficial for any propane consumer with a leased propane tank to have the option to purchase their tank if they detect that they are stuck paying the higher propane prices being charged by the company that owns their leased tank. Ask your supplier if they will agree in writing to sell you the tank that they install at your home under a lease agreement at anytime during your service agreement. Make sure the tank purchase price is noted in the agreement as well. With the option to purchase the tank, you can buy the tank at anytime and immediately take advantage of the lower propane prices being offered to customers that own their propane tank. These are some of the important questions to ask any supplier that you are considering. Each suppliers answers to these questions will give you a good indication if the propane supplier truly offers competitive propane prices and exceptional service to their customers. During your service agreement, you should contact your supplier and challenge their propane pricing if you feel that you are being overcharged for any delivery. If it becomes obvious that your supplier's propane prices are not competitively priced over a period of time, it may make sense to change your service to another propane supplier. If you decide to change your propane service to another supplier, make sure that you complete any pending service obligations with your current supplier prior to asking your new supplier to install a replacement tank and start your new delivery service.
Mistakes happen, problems pop up. Where can you turn for help? Visit the Consumer Action Handbook online and register your consumer complaint directly with consumer contacts at hundreds of companies and trade associations, state and federal government agencies, local and national consumer organizations and many more. Use its sample complaint form as a guide for your own letter or e-mail.
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This is the beginning of our "Propane Pricing Tips" page:
It is very important to conduct your own propane pricing research on a regular basis to ensure that your price is competitive. If you are not participating in a supplier prebuy or price cap program and your suppliers daily propane prices for customers with leased propane tanks are not publicly posted, consider the following methods of research:
Each propane consumer is ultimately responsible for ensuring that his/her propane pricing is competitive. If it becomes evident during your price surveys that your supplier does not offer competitive propane pricing, it may be appropriate to change your propane service to another supplier. If applicable, the summer is typically the best season to change propane suppliers as the tank replacement process can be completed quickly without weather challenges. Many propane suppliers will change-out your existing tank at no charge, including handling all communication with your former supplier to ensure a seamless service transition.
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Some propane consumers become frustrated with being locked into one propane supplier's propane service and propane prices as a result of leasing a propane supplier's propane tank. As a result, some of these propane consumers decide to take control of their propane service by purchasing their propane tank. Propane tank ownership gives control to propane consumers with the primary benefit being the option to call multiple propane suppliers when a propane refill is needed and order propane from the supplier offering the lowest current LP Gas Prices.
Propane consumers considering purchasing a propane tank should contact local propane suppliers that offer propane tanks for sale to obtain a propane tank purchase and installation quote. Multiple propane suppliers should be contacted to obtain multiple propane tank purchase and installation quotes for comparison purposes. Although your propane supplier will oversee the installation, the following list includes a general reference of some items to be researched and considered in the process of purchasing and installing a residential propane tank:
(1) In all cases, without exception, all propane tank installations should be made by a qualified propane service company. A safe installation by a qualified propane technician is critical.
(2) Purchase a new propane tank. A new propane tank will have fresh paint, a new functional gauge and fresh brass fittings. Make sure that the propane supplier selling you the tank clearly notes the warranty period following the tank installation on your receipt paperwork.
(3) Propane Tank Sizes: It is important to consider propane tank sizes when researching propane tanks for sale. Propane tanks are sold based on 'water capacity', which is basically the propane volume that the propane container will store (tanks are typically filled to 80% of capacity to function safely). The propane tanks for sale will fall in two main categories: (1) Propane Bottles or Propane Cylinders and (2) ASME Propane Tank. Propane cylinders will typically be exchanged when a propane refill is needed while ASME propane tanks are typically designed for onsite loading when a propane refill is needed. Most propane bottles range between approximately five gallons (standard BBQ size) to twenty-five gallons. Most ASME propane containers for residential use range between one hundred and twenty gallons to one thousand gallon capacity. Common ASME propane containers are two hundred and fifty to five hundred gallons. The balance of this page will refer to ASME propane tanks for sale.
(4) Propane Container Location: Most cities and counties have established guidelines that apply to propane tank installations. Most rules within the guidelines are designed to enhance safety and minimize the visibility of the propane tank. The positioning of the propane tank relative to vehicle traffic, building structures, underground piping safety and potential sources of ignition are typically reviewed and approved by local building and fire officials before granting propane tank installation approval. In addition, your local propane supplier can provide guidance regarding the proximity of the propane tank to the delivery truck staging location for future propane refills. In most cases, propane consumers should purchase the largest capacity tank approved for installation providing maximum capacity to take advantage of LP Propane Prices that may be favorable when propane refills are needed in the future.
(5) Propane Tank maintenance: Following the purchase of a propane tank, after any warranty period, the homeowner becomes responsible for propane tank maintenance and repairs (painting and replacing fittings in the future). Call the tank manufacturer to inquire about any periodic tank maintenance for your new tank. As noted above, purchasing a new propane tank will minimize the need for maintenance in the early years following the purchase.
(6) Retain the propane tank ownership records in a safe place. At some point, if you decided to sell your home, you want to have proof that you own the propane tank. This will make it easier for the next owner of your home to show propane suppliers that they own the propane tank - providing the opportunity for multiple suppliers to provide price quotes and provide future propane refills.
Upon completion of the propane tank purchase and installation, homeowners begin to realize the benefits of shopping for the best propane cost before ordering a propane refill. In addition, homeowners that own their tank can order summer fill deliveries from the local supplier offering the lowest LP gas prices.
Compare your price with others on CheckPropanePrices.com Propane Prices
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This is the beginning of our "Propane Buyers Groups" page:
Many propane consumers have formed propane buying groups within their community to achieve lower pricing by purchasing their entire volume of propane through one supplier. It is a great opportunity for propane suppliers to increase their customer count and efficiently deliver a high volume of propane within a smaller geographical area. While propane buying groups have the common goal of lower pricing, the structure of buying groups can be very different. In many cases, the buying group will have an informal management organization that will charge each member a small annual administrative fee to cover administrative costs including negotiating the best propane price for the group.
A propane buyers groups' pricing can vary widely depending on many factors, including the geography, the volume of propane purchased by the group and the number of propane suppliers competing for customers in the immediate area.
The initial steps involve identifying the propane consumers in your community that may be interested in joining a propane buyers group. A homeowners association may place a notice in the community newsletter requesting member feedback regarding the idea of forming a community propane buyers group. It is also important to make contact with the propane suppliers in your area to assess their level of interest in providing service to a buyers group. If propane suppliers in the area are not capable of servicing all proposed members or they fail to show interest in servicing a buyers group, the propane buyers group idea should be cancelled.
After identifying the count of the potential members for the buyers group, a list of potential members with contact information should be assembled with a note of the customer tank sizes, volume purchased during the past 12-months and details regarding leased vs. owned propane tanks.
Supplier proposals may include a variable pricing program or a fixed pricing program. The variable pricing program may include a "cost plus margin" formula. This means the supplier will be charging a fixed margin over their current refinery fuel cost. The buyer's group members price will typically adjust in step, up or down, as the propane supplier's refinery cost changes. The margin and refinery cost can vary significantly in different parts of the country. If a fixed price is proposed, the price will typically remain the same for the duration of the service agreement. Each propane supplier representative should be given the opportunity to make a personal presentation of their propane service proposal, including a detailed explanation of their proposed propane pricing formula.
The other items that may be disclosed in each suppliers proposal include the cost to replace any competitor leased propane tanks (if applicable), the timing to complete the leased tank replacements and the annual rental fee for leased propane tanks by tank size (if applicable). The suppliers proposals should also include the hourly labor rate for propane system repairs and maintenance (if applicable) during the term of the agreement.
The term of the service agreement is typically negotiated between the buyers group representatives and the propane supplier that provides the service. A typical service agreement will last between one and five years.
It is important to make sure each proposal is contingent upon verifying the service capabilities of the final supplier candidates. Make sure your future propane group supplier provides both great pricing and great service. Current and past customers of a propane supplier are an excellent source of information on supplier service capabilities.
The best time to consider forming a propane buyers group is generally during the summer months. This gives homeowners the ability to easily identify their annual propane consumption from the recent winter. In addition, the winning bid propane supplier will have the ability to install leased tanks before the challenge of winter weather.
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This is the beginning of our "Propane Service Offseason Checklist"
With spring and summer weather approaching, many homeowners are starting to use their propane service less frequently and are preparing for the summer cooling season. Homeowners that use propane service for heating should consider following up on activities related to home propane service that are more appropriately addressed during the summer months:
(1) Are you considering changing your propane service with a supplier leased tank to another supplier because you are stuck paying your current suppliers propane prices that your research has shown to be non-competitive? Are you experiencing poor service with your current supplier? If either of these cases apply, the summer is the best season to change your propane service to another provider.
Before changing suppliers, make sure that you have completed any service agreement commitment that you may have with your current propane supplier. Also, it is important to carefully consider if a longer term service agreement with your new supplier (i.e. six months to one year or more) is in your best interest. As noted in our 'Pricing FAQs' section, your supplier may not be sharing your propane price per gallon with you before each future delivery and you may be learning (and become very upset) about your propane price per gallon for your recent delivery in your next supplier invoice requesting payment.
If this is the case, it may make more sense to insist on a month-to-month service agreement with your new supplier to research and evaluate local propane prices before each future delivery to ensure that your new suppliers propane pricing is consistently competitive. With a month-to-month service agreement, your propane supplier may have more incentive to ensure competitive pricing and excellent service if the supplier is constantly aware that you can quit their service and change to another propane supplier within a one month period. Your alternative may be to commit to a longer term service agreement and hope that your future propane prices are consistently competitive. This can put you at a significant disadvantage as you may be buying a product without knowledge of the pricing before delivery.
Bottom line: Tell your propane supplier that you insist on being informed of your propane price per gallon (through e-mail, fax or voice mail) 24 to 48 hours before each future delivery. Request that your supplier note their commitment to provide advance notification of your propane price per gallon in your supplier written agreement (in the case that faded memories may need refreshing in the future) before signing. When you receive pre-delivery propane price notifications in the future, make sure you take the time to compare your propane pricing with other local suppliers before each future delivery arrives. It's your money, protect yourself!
After deciding on an agreement with your new supplier, contact your new supplier to set up a tank installation date. Your new supplier will be able to replace your existing propane tank and reconnect your propane service without disrupting your winter heating propane service and complete the work without the challenges of winter weather. When researching local propane service suppliers, review the propane service supplier questionaire in our Pricing FAQs section.
(2) Are you considering purchasing a propane tank for your propane service rather than leasing a propane supplier tank - giving you the freedom to call multiple suppliers next winter to check current propane prices and order propane service from the supplier with the lowest current propane price? As noted in point #1 above, the summer months are the best to complete propane tank installation services.
(3) Is your propane service providers leased propane tank in need of replacement or painting? Rather than being
forced to view an eyesore propane tank on your beautiful property that may be showing rust, faded and peeling
decals, chipping or faded paint or a broken or missing lid - call your propane service provider to request
a replacement propane tank or ask your propane service provider to paint their existing tank. Your propane
service provider should show a high level of concern and pride about the appearance of their propane tank on
your property. If your propane service provider fails to replace or repaint their propane tank within a reasonable
time period, perhaps you should request a suspension or reduction in your propane tank rental fee until your suppliers
eyesore tank is replaced or repainted to restore an acceptable appearance.
This is the end of our "Propane Service Offseason Checklist
This is the beginning of the propane price disclosure page
Many propane suppliers choose not to publicly post their current propane prices. As a result, many propane consumers with automatic delivery that are not participating in a fixed propane price or propane price cap plan are unaware of their propane price per gallon at the time of each delivery. Furthermore, with a leased propane tank, these customers typically must buy all of their propane from the supplier that owns the leased tank. Under these circumstances, a propane customer may be locked into one propane supplier to provide his/her propane deliveries at a propane price the supplier picks that the customer is not aware of until he/she reads the supplier invoice after each delivery requesting payment.
Without knowledge of their propane price before each delivery and lacking the freedom to pursue price offers and deliveries from other competitive propane suppliers to service the leased tank, these customers may or may not be paying competitive propane prices for each propane delivery.
Although some propane suppliers encourage their customers to "call their office for current propane prices", this can be a useless exercise as many propane suppliers tell customers that propane prices change frequently and the supplier typically has the opportunity to change the propane price per gallon to any level between the time the consumer is given a telephone price-per-gallon quote and the time an actual automatic propane delivery occurs, which may be hours later, tomorrow or days later.
Many propane consumers are not comfortable being unaware of their propane price per gallon before each delivery. Two options to help protect propane consumers with leased tanks include the following: (1) Asking propane suppliers to provide 24/7 current propane price postings on their company website, or (2) Asking propane suppliers to provide advance propane price per gallon notification to each leased tank customer in the form of an e-mail, voice-mail or fax 24 to 48 hours before each future delivery, giving consumers the ability to compare the price before each delivery.
Although purchasing a propane tank gives propane consumers the ability to solicit price quotes from multiple propane suppliers to obtain the lowest propane price, not all consumers have the resources to buy a propane tank. Therefore, the two options above would help protect parties that choose to lease a propane tank due to limited financial resources.
One of the best ways for consumers to voice their opinion on topics related to consumer protection is to write a letter to their state consumer protection agency, national consumer advocacy groups, and/or elected officials. These offices and agencies may be able to offer a solution to increase the level of protection for leased tank propane consumers who find themselves in the vulnerable propane price situation described above.
To find consumer advocacy groups to forward a letter, use your preferred search engine (Google, Yahoo, Bing, etc.) and search for "consumer advocacy groups" or search for "state consumer protection agencies" and look on the appropriate agency website for the mailing address.
The following websites provide mailing addresses for many elected officials and letter writing tips:
Contact State and Federal Elected Officials
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The following represents the "Propane Prices: Fixed or Variable?" page
Propane Prices: Fixed or Variable?
Some propane suppliers offer a variety of propane pricing programs to consumers. The major propane price categories include a variable propane price plan or a fixed propane price plan (i.e propane-pre-buy). While some propane consumers are more comfortable knowing their propane price per gallon with a fixed price guarantee, other propane consumers are comfortable with a propane pricing program that is subject to change by their propane supplier. While a fixed propane price removes the risk of increasing propane prices, it is important to realize that fixed propane price programs generally do not guarantee a lower cost of propane through a heating season.
The following points should be carefully considered by propane consumers when evaluating the pros and cons of a fixed propane price per gallon program vs. a variable propane price per gallon program:
Since most propane suppliers do not publicly post their current propane prices, it is very difficult to determine a local current "market propane price per gallon" averaging the propane prices of all local propane suppliers. Some propane suppliers will communicate that their current propane prices are based on "usage", yet the same suppliers typically fail to publicly share a propane pricing schedule that clearly outlines the propane prices that specifically apply to annual quantity brackets (for example, a customer that uses 200 to 500 gallons per years pays this propane price per gallon, while a customer that used 500 to 800 gallons per year pays this price per gallon, etc). Furthermore, many propane suppliers indicate on their website that they do not publicly post their current propane prices because the prices change frequently. Considering these factors, and considering that it is unlawful for propane suppliers to communicate between themselves to fix propane prices, many propane consumers can only assume that each propane supplier has their own "market price" which may or may not be competitive compared to other local propane suppliers. As a result, propane consumers maintain the responsibility of making sure that their propane supplier shares their propane price per gallon before each delivery for comparison with other local suppliers to ensure that is it competitive before each delivery.
When working with a propane supplier that does not publicly post or communicate their current non-fixed propane price per gallon for public comparison, it is very difficult for consumers to determine if their decision to participation in a fixed propane price program was a good decision vs. a non-fixed propane price per gallon at the time of each delivery. Furthermore, the supplier may be charging a fixed propane price program participation fee which ultimately adds to the customers propane cost per gallon. Considering these unknown factors, many propane customers struggle with trying to determine if their fixed propane pricing plan is in fact a money saving program.
The best way to eliminate the mystery around fixed and variable propane pricing is consumer education. When viewing fixed propane price programs offered by local propane suppliers each summer (i.e. propane pre-buy or similar programs), contact each supplier to learn about available fixed propane price programs. Ask each supplier that offers a fixed price program to clearly explain the applicable participation fees, if applicable. Make sure that you read and understand the entire fixed propane pricing program contract before signing.
Propane consumers should also be mindful that a longer-term service agreement (i.e. a multi-year commitment with one propane supplier) may eliminate the option to change propane suppliers to take advantage of a lower fixed propane price program offered by another propane supplier during a current multi-year contract without a contract cancellation fee (if offered). Therefore, it may make sense to request a shorter-term agreement (i.e. month to month) giving you the option to change to another propane supplier when considering renewing a fixed propane price contract during future years. A shorter-term month-to-month service agreement also gives you the additional option to change suppliers within 30-day period should you find that your current propane suppliers overall service is unacceptable.
In addition to fixed propane price and variable propane price programs, some propane suppliers offer a propane price cap program. This type of program basically offers the features of a variable propane price with the protection of propane prices not exceeding a specific propane price per gallon. In most cases, propane suppliers will charge a participation fee as this plan can be viewed as an insurance plan to keep propane prices within a certain range, regardless of the amount that wholesale propane prices change within the contract period. Contact local suppliers to find out if this type of propane pricing program is available in your area.
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