Pre-buying Propane?

jlemon · Sep 24, 2003

I'm in Wisconsin - this year (second year at our new house), I bought a contract for propane at 1.04/gal from the local coop. I think that's a little high, especially compared to summer fill prices at 0.99/gal, but still less than the 1.11 that was being charged last January. The coop offers "price protection" at a non-refundable 0.05/gal - meaning the price would have to go 0.06 below what I bought it from to be worthwhile; I turned this down. It seems that prices are higher up in the chilly states than down south.

dummy · Sep 25, 2003

Locally, yesterday's price was 1.29. Paid a 20.00 fee to lock in at no more than 1.69 for this winter. Now OPEC announced a production drop starting in Nov. care to guess what that will do to our prices?

Bob_In_MN · Sep 25, 2003

Yeah--the only guy who thinks the market is going to go the other way (down) in mid-winter is MY propane guy.

The more I think about it the 1.169 isn't all that bad compared to the unknown. Like I said before--we're due for a long cold winter one of these years.

Bob

snowman · Sep 25, 2003

I'm in Central NY - paid $1.27/gal to lock in this winter versus $1.09 lock in rate last year. Is always a gamble....

RiverV · Sep 25, 2003

I had a summer fill in June for 99.9 but they wouldn't pre-pay until they set their rates in July. It was 116.9 when I pre-paid. Yep, always a gamble.

Dave

snowman · Sep 25, 2003

I had prepaid for 2,500 gallons last year and only used about 2,400, so I had a little credit left over for this year and my tank was full in June or July when the prepayment application came in.

Supposed to be as bad a winter this year as last, but I only prepaid for 2,200 gallons this year.m I'm putting storm windows on this year too, which should help.

ChrisW · Sep 26, 2003

In Ohio for a 400 gallon pre-pay it was $1.45 per gallon. Goes to show ya that they really do charge you more depending on area. I would love to have had it for $1.19 which is what is was last year.

BubbaJr · Sep 26, 2003

I just ordered some yesterday and the price is $1.21 @ gallon if you pay within 10 days. The pricing seems to be like gasoline, whatever the traffic will bear and/or how many overpaid executives they have to support. /forums/images/graemlins/mad.gif

40Kchicks · Sep 26, 2003

The company that I am currently working with locks in prices in July or August. He purchases a contract with the whole sellers. Last summer we locked in at $.75. This summer the prices never really fell that far so the best he could do was $.92. I am grouped together with a bunch of other poultry farmers for better buying power so I get much better prices than residential customers do.

Traditionally the propane prices are best in August and worst in January so if your going to lock in I would do it now. In the three years that I have been tracking prices I have never seen it go down in the winter. Three years ago, before we had lock in prices, the price jumped $.45 cents in three days. I don’t want that to happen again.

Eric

GaryM · Sep 26, 2003

Just had 200 Gal. fill at $1.10. This is in Eastern Missouri. It's my first propane experience, sorry Hank Hill, but as we're only using it for cooking and a generator I don't expect to be their best customer.