Propane prices

3RRL · Jan 14, 2009

I just paid $1.98/gal but 2 months ago it was $1.78/gal.
I'm a routed customer which gives me a 10 cent/gal discount vs those who call in to have their tank filled. I figure it's sort like a stock purchase program being on the route. You buy when it's high or low but it all averages out in the long run anyway.

radioman · Jan 14, 2009

murphy's law - "other companies" is always cheaper then the one you are using.

Wesdor · Jan 14, 2009

Filled up yesterday - 400 gallons at $1.86 / gallon. After looking at all your reports I guess that was a pretty good deal.

Pilot · Jan 19, 2009

When the prebuy price here went to $3.42, I googled "heating cost calculator" and found a couple online calculators that worked out pretty well. Upshot is that with propane at that price the calculator estimated it would cost about $4,300 to heat the house & water vs. about $2,100 plus some propane (don't remember how much; the propane is used when it gets too cold for the heat pump to be efficient). These costs assumed we burned no wood; our firewood will reduce those costs by about 1/3.

Had a heat pump installed for $4,000, but the installer screwed up when he made the estimate and came back & changed out my furnace which was too small for the heat pump to work efficiently (no extra charge; he stood behind what he said).

The first month's electric bill came in $50 higher than last year.

Jimbrown · Jan 19, 2009

$1.98 last week but got a free regulator and a free emergency shut off in the deal.

ByronBob · Jan 20, 2009

I locked in August at $3.29 a gallon for 600 gallons. This was a dollar a gallon higher than the previous year. Back then it didn't look like prices were going to drop so I took a chance.

In the 10 years before this I'd never seen the price drop in the winter. So the odds were low it would happen. What they are today I have no idea. But finding out would just make me frustrated.

The other thing too is the company has never come to me and asked for more when the costs went up. So I don't have a leg to stand on to complain about my cost this time around.

Licklog · Jan 20, 2009

ByronBob said:
I locked in August at $3.29 a gallon for 600 gallons. This was a dollar a gallon higher than the previous year. Back then it didn't look like prices were going to drop so I took a chance.

In the 10 years before this I'd never seen the price drop in the winter. So the odds were low it would happen. What they are today I have no idea. But finding out would just make me frustrated.

The other thing too is the company has never come to me and asked for more when the costs went up. So I don't have a leg to stand on to complain about my cost this time around.

I'm in the same situation that you are. I pre-bought in August at $3.15 per gallon. We normally pre-buy in June/July but the company kept holding off hoping the price would stabilize or drop. I really can't complain since they actually "bought" the gas in August for delivery this winter so they have committed for my portion.

I do have an "out" in my contract. All I have to do is pay $0.15 per gallon on the remaining gallons and go back to the route price. So far the route price has NOT been much lower ($3.00 today) than my pre-buy which tells me that they are not giving me that they are not giving me the straight info or, more likely, they also pre-bought at a higher price and have commitments.

A friend just got a load from her supplier at a cost of $2.79 so it looks like the price is still riding high down here in Tennessee.

deere755 · Jan 20, 2009

I contracted in September for $2.29 a gallon. I had them out in December and the driver told me it was $1.70 but I was locked into a contract. This is the first year I can remember it going down after I signed a contract.

shaqer74 · Jan 22, 2009

I filled last week for 1.59. I own my tank, and live in a kind of large metro area. This allows me to shop around the 3 propane competitors. I get the lowest price, then take it to my preferred filler(who is always higher than the rest) for a price match.